German Court Rejects Legal Challenge to ECB’s Bond-Buying Program

On 21 June 2016, the European Commission issued a statement in which it took note of the judgement by the German Constitutional Court, in which it rejected challenges to the European Central Bank's Outright Monetary Transactions programme.

The Commission welcomed that in substance the court confirmed the decision by the European Court of Justice of 16 June 2015. The European Central Bank acted within its mandate as foreseen by the Treaty on the Functioning of the European Union. While respecting the European Central Bank's independence, the European Commission stood fully behind the ECB in delivering its mandate.

Speaking to the ECON Committee of the European Parliament on the 21 June 2016 Mario Draghi, ECB President, also welcomed the judgment.

• Primary Source

ESO: Background information: ECB again defends bond-buying programme in Germany’s top court http://www.europeansources.info/record/ecb-again-defends-bond-buying-programme-in-germanys-top-court/

EUObserver, 21.06.16: German court sets conditions to ECB bond-buying https://euobserver.com/economic/133922

The Wall Street Journal, 21.06.16: German Court Rejects Legal Challenge to ECB’s Bond-Buying Program http://www.wsj.com/articles/german-court-rejects-legal-challenge-to-ecbs-bond-buying-program-1466498428

The Local.de, 21.06.16: German court rules in favour of ECB crisis-fighting tool http://www.thelocal.de/20160621/top-german-court-to-rule-on-legality-of-ecb-plan-european-central-bank

Deutsche Welle, 21.06.16: German high court rules ECB's OMT program legal http://dw.com/p/1JAPj

Deutsche Welle, 20.06.16: German high court to decide on ECB's OMT superpowers http://dw.com/p/1J8xX

European Parliament: Press Release, 21.06.16: Draghi debates ECB's bond purchasing programme as German court reaches verdict http://www.europarl.europa.eu/news/en/news-room/20160621STO33031/

European Parliament: Press Release, 21.06.16: ECB ready for contingencies following UK referendum, Mario Draghi tells MEPs http://www.europarl.europa.eu/news/en/news-room/20160621IPR33007/

The Telegraph, 21.06.16: AEP: German court capitulates to imperial ECJ in landmark ruling http://www.telegraph.co.uk/business/2016/06/21/german-court-capitulates-to-imperial-ecj-in-landmark-ruling/

Germany: Federal Constitutional Court: Press Release, 21.06.16: Constitutional Complaints and Organstreit Proceedings Against the OMT Programme of the European Central Bank Unsuccessful http://www.bundesverfassungsgericht.de/SharedDocs/Pressemitteilungen/EN/2016/bvg16-034.html

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