Controversial bond purchases: the Ultimatum expired – the ECB seems to be off the hook

It struck like a bomb had: On 5. In may of this year, had taken the Federal constitutional court in Karlsruhe in a sensational judgment, the bond purchases by t

Controversial bond purchases: the Ultimatum expired – the ECB seems to be off the hook

It struck like a bomb had: On 5. In may of this year, had taken the Federal constitutional court in Karlsruhe in a sensational judgment, the bond purchases by the European Central Bank's (ECB) target – for the moment at least one of the Central instruments of European monetary policy.

Christian Siedenbiedel

editor in the economy.

F. A. Z.

"competence contrary to the" be the decision of the governing Council from the year 2015 for the bond-buying have been program PSPP ("Public Sector Purchase programs"), ranted to the court for its then-President Andreas Voßkuhle. And set an Ultimatum: Within three months, the Institution should demonstrate that an adequate consideration of the proportionality of bond purchases, also with regard to the numerous side-effects for savers or for real estate prices was made. If, as the huge threat, the other hand, the Deutsche Bundesbank, after all, one of the most important actors in the Eurosystem will be allowed, not more bond purchases to participate.

Now, today, Wednesday, to three months. And what happened?

Long had legal scholars, political scientists, and Economists discussed how the ECB could create, out of the Dilemma come out. The European Central Bank was not allowed to submit to the orders of a national court. On the other hand, you could let the conflict but also not good to escalate – if there is a threat that the Bundesbank must withdraw from the monetary policy of bond purchases.

That, so it drove the playwright among the observers on the top, might have be able to the end of the common European currency mean. The "From" for the Euro.

to be Active, to be active

it's not So bad now. The ECB has found a way to be active without being active, as it formulated an Economist. The Central Bank has compiled documents of considerable extent, which is aimed at demonstrating that the proportionality of bond purchases, has been sufficiently weighed. Part of the protocols of the ECB-Council meetings, to the part of the older analyses.

It was carefully ensured that none of these papers, specially made for the Federal constitutional court. But at the same time, for example, was recorded in the minutes of the meeting of the governing Council in June, which was made according to the judgment, a remarkably long Passage on the proportionality of bond purchases.

the papers of Speeches by the ECB's Director, Isabel Schnabel, and the ECB's chief economist Philip Lane, the setting out again, bond had a purchases, and on Inflation and economic performance, and that the side effects were present, but lower than many think were Flanked.

Updated Date: 05 August 2020, 19:20

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