The headquarters of the European Central Bank in Frankfurt, Germany. Picture: EPAThe European Central Bank has sought to take the sting out of a German court ruling, justifying its bond purchasing scheme and releasing confidential documents to fend off the threat, minutes from its last meeting showed Thursday.
The Asset Purchase Programme is a “proportionate” measure helping to deliver the ECB's price stability target, the bank's governing council said during its previous monetary policy setting meeting on June 4, according to the minutes. Critics however have long argued that the bond purchases exceed the ECB's mandate and act as subsidies for fiscally irresponsible governments, while savers are penalised as they lose out on interest income.
“The minutes send two messages: the ECB stands ready to do more if needed and it is also trying to put the conflict with the German Constitutional Court to bed.” Germany's Bundesbank will be charged with passing on the documents to the relevant parties, as part of the ECB's response to the high court's judges at Karlsruhe.It also slammed the Luxembourg-based European Court of Justice for rubber-stamping the asset purchases in an earlier ruling, and said Germany was not bound by the ECJ decision.
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