Germany’s top court rejects complaint against ECB bond buys

Germany’s top court rejects complaint against ECB bond buys

© Reuters. FILE PHOTO: A man wearing a protective mask walks past the European Central Bank (ECB) during sunset as the spread of the coronavirus disease (COVID-19) continues in Frankfurt, Germany, April 18, 2021. REUTERS/Kai Pfaffenbach

BERLIN (Reuters) – Germany’s constitutional court rejected on Tuesday a complaint against the European Central Bank’s 2.4 trillion euro Public Sector Purchase Programme, saying the ECB had shown the scheme was appropriate.

The court had ruled last May that lawmakers failed to exercise sufficient control over the Bundesbank, which buys bonds on behalf of the ECB, and ordered the German central bank to quit the scheme unless the ECB provided fresh justification that prove the programme was necessary and appropriate.

Since that ruling, the ECB has provided a trove of documents to the German government and parliament, which accepted its arguments.

“The applications are … unfounded given that the Federal Government and the Bundestag substantially addressed and appraised the monetary policy decisions taken by the ECB … including the proportionality assessment,” the court said in a statement.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Category Latest Posts