Application for issuance of an enforcement order submitted to the Federal Constitutional Court (BVerfG)

The European Central Bank (ECB) refuses to publicly disclose the economic impacts of its low interest rate policy. However, these directly affect many citizens. Therefore, an application for the issuance of an enforcement order was submitted today to the Federal Constitutional Court. In addition, we want to write a so-called "citizen's letter" to the Bundestag and the Federal Government and invite you to co-sign. 

As a reminder: The Federal Constitutional Court determined in a highly publicized ruling on May 5 that the ECB, with its massive expansion of the money supply practiced for the past five years, violates European treaties because it has not examined the impacts of this policy on other economic sectors. The Court demanded that the ECB investigate the following potential problem areas:

1. To what extent do low interest rates harm private, capital-funded retirement provisions (e.g., pension and life insurance)?

2. To what extent are savers harmed because savings deposits are earning a negative real interest rate (i.e., experiencing a real loss in value)?

3. Do low financing costs lead to inflated real estate prices and do high real estate prices lead to high rents?

4. Is the stability of banks and the security of savings deposits endangered by the long low interest rate phase?

5. Do the ECB’s purchases of government bonds lead to government spending and debt increasing more than is sustainable over the long term (incentives for unsound budgetary policy)?

The ECB claims that it has provided the Federal Government with documents in the meantime that answer these questions. However, these documents have been classified as secret, so their content is unknown. Despite contrary announcements by Federal Finance Minister Scholz, the Federal Government has not even sent the documents to the Federal Constitutional Court one month after receipt. The Bundestag has rejected our request for access to the documents.

All this raises the question: What is there to hide?

Why can't the questions posed by the Federal Constitutional Court be answered publicly? 

For what reason are citizens not allowed to find out how the ECB's monetary policy affects retirement provision, savings deposits, rents, credit institutions, and government debt?

We will not accept the secrecy. Therefore, today (August 5, 2020) we submitted a new written statement to the Federal Constitutional Court requesting access to the documents.

Original text: Application for issuance of an enforcement order to the BVerfG from August 5, 2020

We also want to thank our generous donors for the financial support that made this possible.