ECB Continues Showdown with Bundesbank Chief in German Courts

Germany’s top economic policymakers have clashed in court, setting out very divergent views on the legality of measures to tackle the eurozone crisis.

At Germany’s Constitutional Court, the Bundesbank’s chief opposed the European Central Bank’s buying of bonds to ease the pressure on eurozone countries.

But Germany’s finance minister and a German ECB board member strongly defended the policy.

The ECB programme is credited with arresting the eurozone crisis.

ECB President Mario Draghi promised last year to do “whatever it takes” to save the euro, setting out the Outright Monetary Transactions (OMT) scheme, whereby the ECB could buy up unlimited amounts of a country’s debt if investors pulled out.

Confidence has returned to the markets, even though the ECB has not needed to put its plan into action.

via BBC

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