Financial stabilization mechanism violates EU law and German constitutional law

The Euro zone is currently shaken by a deep-seated crisis. The ideals praised during the Euro introduction phase which were meant to secure the stability of the Euro were tossed to the wind all too soon. As a result, the Member States’ budget autonomy has been watered down. In April the finance ministers decided to bail-out Greece. When further Euro states started to encounter severe financial difficulties, the EU established a “European financial stabilization mechanism”.

The European financial stabilization mechanism constitutes a paradigm shift in the design of the monetary union. In addition to the paradigm shift, the European financial stabilization mechanism violates EU law and in several parts infringes German constitutional law.