The Monetary Policy of the European Central Bank

This chapter addresses the tensions between the high level of independence granted to the European Central Bank (ECB) under the Treaties and its accountability. In a first step, it sets out the legal framework of monetary policy within the system of the European System of Central Banks and explains in more detail the quantitative easing programmes of the ECB. It goes on to provide a summary of the back-and-forth litigation on the scope of monetary policy between the Court of Justice and the Bundesverfassungsgericht in Gauweiler and Weiss. Next, the chapter focuses on the judicial review of the monetary policy decisions by the Court of Justice and the national courts. Both these sections follow the same structure: first, they analyse access to courts and remedies; and second, they show how the courts under analysis approached the principles of equality and solidarity, for the purposes of achieving the common interest. The chapter closes with an examination of judicial interactions between EU and national courts and the role these play in the legal accountability of the ECB.