Skip to content
Subscriber Only
Business
Economics

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
Video player cover image
Germany Ruling Won't Constrain ECB in Short Term, JPMorgan Says
Updated on

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.