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ECB Must Justify QE Bond Purchase Program, German Judges Rule

  • Court asks Germany to make sure program is proportionate
  • Judges give 7-to-1 ruling on program’s constitutionality
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Germany Ruling Won't Constrain ECB in Short Term, JPMorgan Says
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The European Central Bank can continue its bond purchases, but will have to justify its policies within three months after Germany’s top court expressed a number of concerns with the program.

The judges’ critical language sets a hurdle for the ECB’s crisis-fighting, though the ultimate impact may be muted. The new 750 billion-euro ($813 billion) Pandemic Emergency Purchase Program, a response to the coronavirus outbreak, isn’t covered by the ruling.