German ECB critics fail before the ECJ

The trillions of heavy bond purchases by the European Central Bank (ECB) is not in breach of European law. The ECJ has ruled. The Federal constitutional court had expressed in the summer of 2017 doubt that the purchases still fall into the competence of the ECB. the

the opponents of The bill ions heavy bond purchases by the European Central Bank (ECB) have suffered before the European court of justice (ECJ) a significant defeat. Especially in Germany, disputed transactions, which should help the economy in the Euro-Zone, not in breach of EU law, stated the judges in Luxembourg.

The Federal constitutional court had expressed in the summer of 2017 is in doubt, whether the purchases fall within the competence of the ECB and the matter to the ECJ for consideration. The German judges saw "weighty reasons" that the transactions violated the prohibition of monetary state financing, and the ECB is exceeding its mandate.

Peter Gauweiler, Bernd Lucke

had Complained, among other things, The judge at the Cjeu, to hold the measures, however, is legitimate. From the EU treaties, that it is clear that the ECB could operate in the financial markets. The ECB would be denied such means, could this be the "insurmountable obstacle" in ensuring a stable monetary policy, share with the judges. In other words: Would the ECB's critics assert, would be gagged by the Central Bank.

Against the bond purchases had complained, among other things, the CSU politician Peter Gauweiler, the AfD-founder Bernd Lucke and the Berlin-based Professor Markus Kerber. The ECB buys for March 2015, government bonds and other securities. They wanted to strengthen the economy in the Euro-Zone and the relatively low Inflation boost. Meanwhile, the economy is better again. The ECB will purchase the Bonds program, which amounts to 2.6 trillion euros, so for the new year, let it expire.