Austria’s Central Bank chief Robert Holzmann has expressed confident about the move by the European Central Bank (ECB) for a compromise with the Federal constitutional court. Holzmann said on Friday, according to the F. A. Z.: “The European Central Bank has now brought documents which will prove that the governing Council has weighed the proportionality of the bond purchases.”
Christian Siedenbiedel
editor in the economy.
F. A. Z.
It was never a question that the ECB and the other Central banks of the Euro system could stop because of the judgment of the German constitutional court, currently the bond purchases in the crisis, Holzmann more. “Demanded by the German constitutional court that a consideration of the proportionality and efficiency for the old bond program PSPP to the year 2015 is made.”
The governing Council of the ECB have now released documents that would be passed on to the Bundesbank, the German government and the Bundestag. “This seems to me to be well on the way”, said Holzmann.
ECB to revise its strategy
in Principle, the ECB will have to revise your strategy, the Austrian Central Bank chief more. “This is also the view that we have in place efficient and targeted instruments.” The question of whether bond purchases led to so-called Moral Hazard in the States, if they lowered the incentive to a quarter of the economies for countries that could play a role, said Holzmann.
The governing Council have recently decided, together, that crisis management further Action was necessary. “Therefore, we have increased our pandemic program Pepp to 600 billion euros.”
