Economy & Politics

European Court of Justice reframe ECB

If the Kirchberg-based institution has confirmed the role and power of the European Central Bank (ECB), it asks it to explain the reasons which push it to impose financial penalties.

If the Kirchberg-based institution has confirmed the role and power of the European Central Bank (ECB), it asks it to explain the reasons which push it to impose financial penalties.

(ER) – “The ECB can impose financial sanctions but it must justify its decision.” This is in summary the judgment rendered by the European Court of Justice in the framework of the supervision of the ECB on credit institutions.

Our colleagues from Luxembourg Times report in particular the case of an accused bank, identified in court documents under the name of VQ, which was fined. The court confirmed the financial penalty of 1.6 million euros imposed by the ECB. But in other cases, the institution, which is based in Frankfurt, has had its decisions confirmed but its sanctions have been canceled. The ECB did not provide sufficient reasons to explain how it arrived at the amount of the fines, the court said.

Following these files, the European Court of Justice recalled that “the ECB is entitled to impose an administrative financial penalty, the maximum amount of which may correspond to 10% of the total annual turnover of the group concerned” but with the aim to respect European legislation, it must also “justify its decision”.


Head of Romania's anti-corruption investigative body, DNA (Directia Nationala Anticoruptie), Laura Codruta Kovesi, gives a press conference at DNA's headquarters in Bucharest on February 14, 2018. Kovesi described the voices of the left majority calling for her resignation, as an

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In addition to the European Court of Justice, a new body will join the Kirchberg site in the coming months. In fact, the newly created European Public Prosecutor’s Office (EPPO) is to be established in Luxembourg in November 2020. It will be headed by the Romanian Laura Codruta Kövesi and will have to ensure in particular the proper use of the funds made available by the EU.


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