The Court of Justice of the European Union has established their conformity with European law a securities purchase program by the European Central Bank (ECB). This is the UNWTO project, created in 2012 but never used.
The program, intended to prevent a surge in debt rates in the southern countries of the eurozone, was challenged in February 2014 by the Constitutional Court German. It estimated that the ECB exceeded its mandate. The EU Court of Justice on Tuesday rejected this argument.
Created in 2012 at the height of the European debt crisis, monetary operations security (UNWTO) consist for ECB to buy sovereign debt on the secondary market. Provided that the country requests it and is bound by any EU financial assistance program.
The ECB is never used, but a group established in Germany representing 35 ’000 people, including politicians and academics, lodged with the EU Court of Justice to challenge its legality.
Free for QE
The decision of the latter gives the institute chaired by Mario Draghi free to pursue the implementation of another device: launched in March, quantitative easing (QE) consists of repurchases in large part sovereigns to € 60 billion per month. The aim is to boost inflation and activity in the euro area.
The Court of Justice in its judgment states that securities such as UNWTO buyback program should include conditions allowing ensure that it does not violate the prohibition of a central bank to directly finance States
(ats / 06.16.2015 10:17).
( ATS / 06.16.2015 10:17) ->
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