According to Chancellor Angela Merkel (CDU), the Federal Constitutional Court clearly refers to the limits of the European Central Bank (ECB) in its judgment on government bond purchases. This is also of institutional importance because the court is to a certain extent against the European Court of Justice (ECJ), said Merkel at a meeting of the Union parliamentary group on Tuesday, as the German Press Agency learned from participants.
In addition, certain demands were made of the ECB’s duty to state reasons, which the Federal Government and Bundestag should demand, Merkel made further clear. The Federal Government would now have to evaluate the judgment carefully.
CSU head of regional group Alexander Dobrindt also spoke of the fact that the Federal Constitutional Court’s ECB ruling clearly shows the limits. In addition, the court clearly questioned the proportionality of the bond purchase program, Dobrindt said.
“With this, the Federal Constitutional Court is issuing a clear warning signal to the ECB’s actions. The fact is that the judgment is an unequivocal request to the ECB to return to its actual mandate to ensure the stability of our common currency.”
In order to stimulate the economy and inflation, the central bank invested billions of euros in the purchase of government bonds and other securities. According to the constitutional judges, the ECB has thus overstretched its mandate for monetary policy. The Federal Government now has three months to persuade the ECB to review the PSPP purchase program. After that, the Bundesbank should no longer participate.