An early Christmas Gift from Karlsruhe?

The 6 December Karlsruhe ruling on the constitutional complaints against the ‘Act Ratifying the EU Own Resources Decision’ will be received by many as a Saint Nicholas present. This time, the Federal Constitutional Court avoided the head-on collision with the EU it caused with its PSPP judgment two and a half years ago. Instead, it opted for a seemingly constructive assessment of the EU’s pandemic recovery instrument. In particular, it found that the ORD did not manifestly exceed the competences conferred on the EU – i.e., it was not ultra vires – and did not affect the constitutional identity of the Basic Law. While the ruling is not as constraining as some might have feared, it does not give card blanche for a more permanent EU fiscal capacity.