In ECB We Trust ... The FCC We Dare! The OMT Preliminary Ruling

In its first-ever preliminary reference, the German Federal Constitutional Court dictated in essence to the Court of Justice of the EU the interpretation that it should give to the Outright Monetary Transactions programme of the European Central Bank in order to avoid its ultra vires pronouncement. In its ruling, the Court proceeds to a teleological interpretation of the programme that acknowledges the wide margin of appreciation possessed by the ECB in the performance of its powers, and the interrelation that exists between monetary and economic policy. The Court also confirms that it is not intimidated by ultra vires threats and that it intends to protect its prerogatives under the preliminary reference procedure and the centralised system of judicial review prescribed by the Treaties. At the same time, its interpretation of the contested programme makes it challenging for the German constitutional court to proceed to an ultra vires ruling in the absence of a manifest breach on the part of the ECB.