ECJ: ECB bond-buying programme is legal

The ECB is in breach with their massive purchase of state bonds does not violate the prohibition of state financing. The European court of justice ruled. The judge justified this to the fact that no EU-preferred state.

The opponent of bond purchases by the ECB have suffered before the European court of justice (ECJ) for a defeat. The judge stated that, especially in Germany, the disputed transactions are covered by EU law. The ECB did not violate the prohibition of state financing, nor against her mandate.

have The European Central Bank as a primary objective to maintain price stability in the Euro area and to achieve an inflation rate of nearly two percent. In order to do this effectively, whether bond purchases are justified. In addition, no States would be preferred. The purchase program was not directed to the financing needs of the countries.

The Central Bank had to deal with the Euro crisis a number of purchase programmes for securities that have the goal to push interest rates and make money more readily available. In this dispute, it was a part of the programme for the acquisition of securities of the public sector, which began in March of 2015. It purchased on the so-called secondary markets of bonds for two-digit billion amounts. In the meantime, the ECB has invested more than two trillion euros.