What Role is left for National Authorities within the Single Supervisory Mechanism?
On 30 July 2019, the German Federal Constitutional Court has decided whether the single supervisory mechanism (SSM) of the euro zone complies with the German constitution. The question of whether the ECB's banking supervision is covered by the European Treaties is especially relevant. In an Adhoc, the cep assesses a recent ruling of the European Court of Justice (ECJ) on this issue.
cep criticises the ECJ's decision that the European Central Bank has exclusive competence in the field of banking supervision. According to cep, the ECB's competence can hardly be regarded as exclusive. Since banking supervision is an integral part of internal market policy, it qualifies better as a shared competence between the Union and the Member States. The Court's interpretation of the SSM Regulation therefore does not appear to be compatible with the European Treaties. If the Federal Constitutional Court were to request a preliminary ruling by the ECJ to clarify the compatibility of the SSM Regulation with the European Treaties, it cannot be assumed that the ECJ will limit the powers of the ECB.