BERLIN - The European Central Bank has met the principle of proportionality with its flagship stimulus programme, Germany’s finance minister and lawmakers said, ending a legal conflict that threatened to undermine central bank policy.
The Constitutional Court last month gave the ECB three months to justify bond purchases under the stimulus plan — the Public Sector Purchase Programme — or lose the German central bank as a participant. The ministry had reviewed ECB documents on the stimulus plan, passed on by the Bundesbank, and held numerous talks with the ECB and the Bundesbank in recent weeks, Scholz wrote.In its May 5 ruling, the court urged the German government and parliament to challenge the ECB on the stimulus and raised questions on its effects on savers and fiscal discipline.
The documents, which were labelled confidential before being sent to the Bundestag, also showed ECB staff had some misgivings about giving in to the Bundesbank’s main demand at the time: making each national central bank bear the risk of the domestic government bonds it bought.“Perceptions of weak Eurosystem cohesion may well underwhelm markets and create a backlash that would undermine the progamme,” ECB staff told policymakers in a presentation in the run-up to the policy decision.
We are so glad Germany approves what ECB does, all other countries were so waiting for this. Thank you Germany for letting us all feel like we are part of a unique ecosystem. 😒
That's great news finally we can move ahead United..
Just let it happen, we the English don't give a shit anymore
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