Germany’s top court rejects complaint against ECB bond buys

Germany's constitutional court rejected on Tuesday a complaint against the European Central Bank's 2.4 trillion euro Public Sector Purchase Programme, saying the ECB had shown the scheme was appropriate.

Germany's constitutional court rejected on Tuesday a complaint against the European Central Bank's 2.4 trillion euro Public Sector Purchase Programme, saying the ECB had shown the scheme was appropriate. The court had ruled last May that lawmakers failed to exercise sufficient control over the Bundesbank, which buys bonds on behalf of the ECB, and ordered the German central bank to quit the scheme unless the ECB provided fresh justification that proves the program was necessary and appropriate.

Since that ruling, the ECB has provided a trove of documents to the German government and parliament, which accepted its arguments. "The applications are ... unfounded given that the Federal Government and the Bundestag substantially addressed and appraised the monetary policy decisions taken by the ECB ... including the proportionality assessment," the court said in a statement.

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