That says Advocate General Pedro Cruz Villalón of the European Court of Justice on Wednesday morning. The Opinion of the Advocate General is not binding.
According to the Court, the ECB was in the “exceptional circumstances” of the euro crisis in 2012, no longer capable of the entrusted monetary policy “properly” to perform.
The German Constitutional referred the case last year on the legality of the buyback program, which officially Outright Monetary Transactions (OMT) is called, to the Court of Justice. The case was brought by German politicians and economists against the federal government because their rights were violated by the buy-back program.
In response to the ruling, the euro fell sharply against the US dollar.
The highest court in Germany bent in the summer of 2013 on whether the unlimited purchase of government bonds of euro countries is contrary to the mandate of the ECB. The central bank may States does not finance.
The Advocate General says in his conclusion that courts “considerable restraint” should keep in monitoring activities of the ECB, because those authorities lack the expertise and experience who has the ECB.
The central bank’s main task is the price level to maintain a healthy level, but in an attempt to curb the euro crisis, the ECB in August 2012 about to start buying government bonds to the rest of the financial get markets back.
Interest rates of Southern European government bonds rose to near unsustainable heights. According to the Advocate General of the European Court is the buy-back program suited to lower yields on government bonds.
The Court of Justice is the highest judicial institution of the European Union.
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