CLARIFICATION: Governor of the Bank of..........>

ECB: CLARIFICATION: Governor of the Bank of Finland and former EU Commissioner

Olli Rehn has criticised the German Constitutional Court in a speech to the

Finnish parliament, stating that the GCC's decision does not have an instant

impact on the ECB's monetary policy. 

- He says that the GCC must be in agreement with the ECJ's view that the PSPP

does not breach ban on public sector central bank funding. 

- Argues that the ECJ has the right to interpret the actions of EU institutions,

not national courts, and that allowing any change to this precedent could have

negative implications for the EU. 

** MNI VIEW: Our Political Risk team think the impact of the GCC's ruling is

likely to be felt widely for some time, both within German domestic politics

(pitting federalists against those in favour of retaining more national

sovereignty), and in the wider EU, where some southern member states have

expressed dismay at the GCC's ruling as going against the principle of 'ever

closer union' and as a 'selfish' act of a wealthy member state protecting its

own interests at a time of crisis.