Constitutional Ruling on Court of Auditors’ Review of Banks
|Publication:||Policy Letter No. 01, 2012|
|Topic Area:||Corporate Finance|
|Keywords:||fiscal responsibility, control by Court of Auditors|
In its decision of December 13, 2011, the Constitutional Court of the state of North Rhine-Westphalia ruled that a State Court of Auditors is granted by the constitution a broad scope of powers not only to control the immediate state administration but also entities outside the direct state administration, as far as they exercise financial responsibility for the state. This ruling may have serious implications for the capital guarantees extended by EU Member States to the newly established institutions on the European level, as for instance the European Stability Mechanism (ESM).
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