Germany’s Constitutional Court will refer a complaint against the European Central Bank’s flagship “unlimited” bond-buying plan to the European Court, removing the prospect of it curbing the program.
The court said on Friday there was good reason to think the scheme “exceeds the European Central Bank’s monetary policy mandate and thus infringes the powers of the member states, and that it violates the prohibition of monetary financing of the budget”.
The ECB’s Outright Monetary Transactions (OMT) programme, announced by ECB chief Mario Draghi in September 2012 at the height of the sovereign debt crisis, is widely credited with stabilising the euro.
Euro/Usd drop on this news
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