Germany’s top court rejects complaint against ECB's bond buying scheme



* Court says flagship PSPP scheme is appropriate

* Ruling backstops post-COVID euro zone stimulus programme

* Second German complaint pending over pandemic-linked QE

BERLIN, May 18 (Reuters) - Germany's constitutional court on Tuesday rejected a complaint against the European Central Bank's flagship bond-buying scheme, in a ruling that primes the euro zone economy for more stimulus once the bank's pandemic-related emergency measures end.

The Karlsruhe judges said the bank had demonstrated that the 2.4 trillion euro ($2.9 trillion) Public Sector Purchase Programme (PSPP), launched in 2015 to fight off deflation, was appropriate.

"Slowly but surely, Karlsruhe is losing its role of lender of last resort for German euro critics," ING economist Carsten Brzeski said of Tuesday's ruling, which was welcomed by the finance ministry in Berlin.

One of the sponsors of the complaint against the PSPP was Peter Gauweiler, a former member of the governing CSU party and one of a handful of prominent and long-standing German critics of the ECB's money-printing quantitative easing programmes.

They have argued the ECB schemes jeopardise German taxpayers' money and break a ban, enshrined in EU treaties, on the central bank financing governments.

Last May, the court ruled that lawmakers had failed to exercise sufficient control over the Bundesbank, which buys bonds on behalf of the ECB, and ordered Germany's central bank to quit the scheme unless the ECB provided proof that it was necessary and appropriate.

Since that ruling, the ECB has provided a series 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 on Tuesday.

Gauweiler's co-sponsor was Bernd Lucke, a founder of the right-wing Alternative for Germany party.

Another German ECB critic, Berlin finance professor Markus Kerber, has brought a separate complaint against the ECB's Pandemic Emergency Purchase Program (PEPP), saying the 1.85 trillion euro scheme launched last year in response to the outbreak broke a ban on financing governments.

That case is still pending and a ruling may take two years. The ECB has said it would buy new bonds under PEPP until March 2022 at the earliest and reinvest proceeds from maturing paper until at least the end of 2023. ($1 = 0.8187 euros)
Reporting by Riham Alkousaa and Michael Nienaber; Writing by Francesco Canepa; Editing by Catherine Evans and John Stonestreet

免責聲明: XM Group提供線上交易平台的登入和執行服務,允許個人查看和/或使用網站所提供的內容,但不進行任何更改或擴展其服務和訪問權限,並受以下條款與條例約束:(i)條款與條例;(ii)風險提示;(iii)完全免責聲明。網站內部所提供的所有資訊,僅限於一般資訊用途。請注意,我們所有的線上交易平台內容並不構成,也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。

所有缐上交易平台所發佈的資料,僅適用於教育/資訊類用途,不包含也不應被視爲適用於金融、投資稅或交易相關諮詢和建議,或是交易價格紀錄,或是任何金融商品或非應邀途徑的金融相關優惠的交易邀約或邀請。

本網站的所有XM和第三方所提供的内容,包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接,皆爲‘按原狀’,並作爲一般市場評論所提供,而非投資建議。請理解和接受,所有被歸類為投資研究範圍的相關内容,並非爲了促進投資研究獨立性,而根據法律要求所編寫,而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊,相關詳情請點擊 這裡查看。

我們運用 cookies 提供您最佳之網頁使用經驗。更改您的cookie 設定跟詳情。

風險提示: 您的資金存在風險。杠杆商品可能不適合所有客戶。 請詳細閱讀我們的風險聲明