Promoting Economic Cohesion Over the Continued Rise of National Interests: Landeskreditbank Baden-Wu¨rttemberg - Fo¨rderbank v. European Central Bank

• Author: Kyle A. Markwardt
• Pages: 291-301

Promoting Economic Cohesion Over the

Continued Rise of National Interests:

Landeskreditbank Baden-W ¨urttemberg –

F¨orderbank v. European Central Bank

K

YLE

A. M

ARKWARDT

1

The 2008 financial crisis, and consequently the European debt crisis,

drastically encouraged law-making bodies in the United States and abroad to

reexamine and, in many cases, to overhaul the regulatory schemes

concerning the banking industry. Perhaps none more so than the European

Union (EU), which faced the difficult task of balancing the competing

interests of its Member States against the cohesion of the Eurozone and its

single currency.

2

While the financial crisis seems a distant memory in the

United States (at the time of writing this article, the unemployment rate is

still relatively low at 3.5 percent and the average hourly wage increased 2.9

percent over the past twelve months

3

), the European Union still faces

difficulty mounting a full recovery as the European Central Bank (ECB)

struggles to keep inflation under control and continues its asset purchase

plan.

4

Consequently, with the rise of nationalistic overtones to various

governmental leaders, particularly in the U.S. and U.K., the regulatory

scheme of the European Union faces mounting criticism.

5

This becomes

more important as more U.S. officials see the possibility of a new recession

on the rise.

6

With this in mind, the decision, and subsequent appeal, of Case T-122/15,

Landeskreditbank Baden-W ¨urttemberg – F¨orderbank v. European Central Bank,

presents an interesting and novel discussion about how the ECB will attempt

1. Kyle A. Markwardt is a candidate for Juris Doctor, Class of 2021, at SMU Dedman School

of Law. Kyle would like to thank his loving wife, Brandi, for her continued support of his legal

education, as well as the staff of SMU’s International Law Review for their help editing this

note.

2. See Council Regulation 1024/2013, 2013 O.J. (L 287) 63 (EU) (recitals 1 – 6).

3. B

UREAU OF

L

ABOR

S

TATISTICS

, U.S. D

EP

’

TOF

L

ABOR

, USDL-19-1735, T

HE

E

MPLOYMENT

S

ITUATION

– S

EPTEMBER

2019 (2019), https://www.bls.gov/news.release/

archives/empsit_10042019.pdf.

4. Press Release, Eur. Cent. Bank, Monetary Policy Decisions (Sept. 12, 2019), https://www

.ecb.europa.eu/press/pr/date/2019/html/ecb.mp190912~08de50b4d2.en.html.

5. See generally Martin Arnold, Draghi Faces Chorus of Criticism Over Fresh Stimulus, F

IN

.

T

IMES

(Sept. 13, 2019), https://www.ft.com/content/9039dd0e-d61f-11e9-a0bd-ab8ec6435630.

6. See generally Heather Long, The Fed Has ‘Put the Economy into a More Dangerous Position,’

Central Bank’s Kashkari Says, W

ASH

. P

OST

(Sept. 24, 2019, 3:37 PM), https://www.washington

post.com/business/2019/09/24/fed-has-put-economy-into-more-dangerous-position-feds-kash

kari-says/.

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