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Von der Leyen on brink as German court threatens EU’s biggest ever financial deal

URSULA VON DER LEYEN might soon find herself in trouble, as Germany's highest court could force member states to revisit the EU's recovery fund, a legal expert has claimed in an exclusive interview with Express.co.uk.

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After its ruling in May 2020 threatened the participation of the German central bank in a vital bond-buying scheme of the European Central Bank (ECB), Germany's highest court has taken aim at another EU-wide initiative: the €750billion (£668bn) recovery fund, also known as Next Generation EU. In yet another surprising move, the German Federal Constitutional Court, based in the city of Karlsruhe, has blocked the ratification process of the Own Resources Decision – the legislative instrument that would allow the European Commission to borrow money directly from the capital markets and repay it over the next decades. The Own Resources Decision must be ratified by all 27 member states before the Commission can start distributing the cash in the form of grants and low-interest loans.

So far, only 16 countries have submitted their ratification.

Last Friday, German President Frank-Walter Steinmeier was ready to sign off Germany's ratification of the legal text but the constitutional court prevented him from rubber-stamping it in order to examine first an emergency appeal filed by the far-right party Alternative for Germany (AfD) and a civic group named Bündnis Bürgerwille, or Citizens' Will Alliance.

Both argue the recovery fund is illegal and in breach of the EU treaties.

Reacting to the news, the European Commission reaffirmed its confidence on the legal validity of the Own Resources Decision.

It is unclear how long the German court will take to examine the emergency appeal.

Some say it could take weeks or months, perhaps thwarting the Commission's schedule.

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Von der Leyen on brink as German court threatens EU’s biggest ever financial deal (Image: GETTY)

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Germany's constitutional court (Image: GETTY)

In an exclusive interview with Express.co.uk, Mar Aguilera Vaqués, professor of constitutional law at the University of Barcelona, warned EU chief Ursula von der Leyen her plans could indeed be thrown into disarray.

The legal expert claimed member states might have to go back to Brussels and change the recovery fund if the Court finds the bloc's recovery package unconstitutional.

She said: "Whether it is illegal or not, it is for the German constitutional court to decide and for the European Court of Justice to consider...

"But I am a professor of constitutional law.

"My colleagues from international law always say international law is above internal law.

"On the other hand, we, constitutional professors, say it is the constitution of the country."

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The recovery fund was approved by member states in July, 2020 (Image: GETTY)

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Mar Aguilera Vaqués, professor of constitutional law at the University of Barcelona (Image: EXPRESS.CO.UK)

When asked what she thinks will happen, Ms Aguilera Vaqués said: "Of course, the German constitutional court could very well say 'we cannot do this, because it goes against the constitution'.

"'So we either change the constitution or the EU changes the recovery fund'."

According to her, the latter is more likely.

She added: "Everybody knows...

"We will see... but Germany is a leading country in the EU so whatever its constitutional court says, it has an impact for sure."

German lawyer and politician Dr Peter Gauweiler is one of those on the political scene who is arguing the recovery fund is "absolutely illegal".

The lawyer harshly criticised the package and told Express.co.uk: "It is contrary to the structures of the European treaties.

"Fiscal law should not be Europeanised because of the bigger legitimisation basis of the national parliaments.

"It’s absolutely illegal."

German MEP Gunnar Beck also echoed Dr Gauweiler in another interview with Express.co.uk.

Mr Beck said: "The recovery fund is so expensive and unlawful.

"It is clearly against the wording of the articles 310 and 311 of the Treaty of the Functioning of the EU.

"They clearly state that the EU is not allowed to take debt on the financial market.

"It is a breach of treaty. It is a breach of the EU constitution."

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