Controversial bond purchases: the ECB’s governing Council are for a compromise with the constitutional court free

The governing Council, the highest monetary policy body of the Central Bank, has made the way for a possible compromise solution in the dispute with the German Federal constitutional court. The panel has approved the documents to be handed over to the Bundesbank, so they forward it to the Bundestag and the Federal government. This has been confirmed by several members of the ECB’s governing Council on Thursday. Thus, the requirement of the constitutional court should be done after a consideration of the proportionality of the bond purchases is sufficient.

Christian Siedenbiedel

editor in the economy.

F. A. Z.

In the case of these documents it is not intended to be new, specially-written documents. Rather, the ECB uses two seem to be old analyses and protocols of Council meetings, which have not been previously published. Therein on the basis of models, the effects and consequences of the 2015 adopted bond purchases should be investigated. Some of the documents are to be submitted at the time the European court of justice. ECB President Christine Lagarde had referred several times to the importance of the meeting protocols for the documentation of such considerations.

the bond purchases Are relatively?

Explicitly to the proportionality of bond purchases, the ECB is in the minutes of the meeting of the governing Council of 3. and 4. June, which were released on Thursday. In the fourteen-page document, the term “relatively is found three times”. It was talked about a kind of balancing of interests: Therefore is to consider the extent to which the purchases are to Achieve the monetary policy objective is to contribute. On the other hand, unwanted side effects are to be taken into account. Exactly had demanded the constitutional court. Already on Wednesday, ECB chief economist

Philip Lane had given in detail the justification for bond purchases as a monetary policy response to the pandemic.

Also other possible reactions to the decision in Karlsruhe, such as discussions of the Bundestag with the German Federal Bank President and a response to the request of the MEPs, Sven Simon, to be followed, as we Heard more. The Bundestag put together a special list in which all the parliamentary activities of the Bundestag for the observation of the monetary policy are summarized. More than 100 hearings, debates and inquiries have been recorded since 2017. The Federal Ministry of Finance said on request only, to be with all the players in a good and trustworthy exchange and be confident to find a good solution.

Economist: a “elegant” way

The Finnish Central Bank Governor Olli Rehn, was in the “Handelsblatt” quote, which is now chosen to be a “pragmatic solution”. Similar to other members of the Council expressed in the tendency. Carsten Brzeski, Economist of the Bank ING, wrote in a comment, it looks as if the Central Bank had found an elegant way to end the dispute with the German constitutional court.