The ECB and the Court of Justice: Old Toolbox, New Problems

This chapter explores the judicial accountability of the European Central Bank (ECB). Has judicial control kept pace with the evolution of its functions? The euro-area crisis, in the fight against which the ECB assumed a dominant role, and the advent of Banking Union have had a transformative effect on the ECB’s mandate. Is judicial scrutiny a reliable form of accountability? How has the Court of Justice responded? The chapter engages with the rationale for judicial review of central bank decisions, discusses the distinction between economic and monetary policy, and reflects on the role of proportionality. It also looks at the standard of review and the application of process requirements by the Court of Justice. It then examines the new litigation landscape of prudential supervision focusing on composite procedures, the application of national law by the ECB, and litigation on the imposition of fines. It finds that, thus far, judicial control has kept pace with the evolution of the ECB’s functional transformation although the ECB remains part of a governance framework that suffers from an undue level of uncertainty and the greatest challenges are perhaps still to come.