On May 5, 2020, the German Federal Constitutional Court issued the PSPP decision, sending shock waves through the European Union. This contribution analyzes the consequences of the PSPP decision for the future relationship between the German FCC and the CJEU and for European integration as a whole. The article consists of four parts. First, I will provide some context and model the interaction between domestic and international courts from a rational choice perspective. Second, I will recapitulate some core aspects of the relationship between the German Federal Constitutional Court and the CJEU in particular. I argue that the relationship between both courts had evolved into a strategic equilibrium in which it was costly not to respect the decision of the other party. The third section then looks for reasons why Karlsruhe nevertheless deviated from this equilibrium despite the significant costs involved. The fourth section, finally, considers the way ahead and analyzes what possible consequences for the future relationship between the Federal Constitutional Court and the CJEU.

This contribution explores paradoxes of ultra vires review with specific regard to the PSPP decision of the German Federal Constitutional Court in the light of the decision’s initial reception. While some of these paradoxes are inherent in the very nature of ultra vires review, others are specific to the PSPP judgment. They relate to the underlying doctrinal and theoretical premises, to key concepts such as proportionality or the scope of judicial review, to the overall context in which the decision is embedded, and even to the community which is addressed and affected by the decision. It is the sad irony that the Federal Constitutional Court, while accusing others of manifestly exceeding their competences, does not sufficiently adhere to its own standards and increasingly risks overstretching the boundaries of its mandate under the Basic Law.

The commentary, especially from abroad, on the Federal Constitutional Court’s judgment concerning the bond-buying programme undertaken by the European Central Bank (ECB) conveys the impression that something unimaginable has occurred. The German court has refused to follow the ruling of the Court of Justice of the European Union (CJEU), thereby setting “a bomb under the EU legal order.”1 Yet there is nothing new about the risk of conflict between the two courts. It came about when the Court of Justice of the European Union implicitly presumed, in 1963,2 and explicitly declared, in 1964,3 that European law takes precedence over domestic law, even over domestic constitutional law. This view was by no means without alternative, given that the Treaties of Rome do not address the precedence of Community law. The Member States involved in the dispute denied having agreed to any such precedence in the Treaties. Even the CJEU’s Advocate General was unable to find any basis in the Treaties for the precedence of European law.4 The CJEU derived the precedence of European law from the purpose of the European Economic Community.5 It argued that there could be no common market if each Member State applied and interpreted European law however it saw fit.

The Federal Constitutional Court’s ultra-vires case law—especially its most recent iterations—has more than its fair share of bad parts. It went from non-existence to global prominence in an alarmingly short period of time. Fortunately, the doctrine contains some extraordinarily good parts. Within the case law, there are three beautiful, elegant, and highly expressive elements that are buried under a massive tower of good intentions and hard luck: First, the principle of distinction between the two concepts of responsibility and accountability, second, the ban on transferring blanket empowerments, and third, the idea of a “program of integration” as a good medium for expressing vague ideas. In combination, these elements constitute a constitutional mechanism that does not play hell with European law, but truly complements any union based on multi-level cooperation. Focusing on the good parts—and avoiding some bad parts—might help prospective ultra-vires reviews to steer clear of wreaking havoc. The subset of good parts can serve to shift the constitutional case law towards reliability, readability, robustness, foreseeability, and, if nothing else, explicability.