A German lawsuit alleging the European Central
Bank’s (ECB) bond-buying programme exceeds its
mandate has merit, according to banking lawyers. But courts are
not likely to side with the complainant for fear of disrupting
claim lodged by former politician
Peter Gauweiler last month argues that the
ECB’s €1.1 trillion ($1.2 trillion)
quantitative easing programme involves state financing and
economic policy – not simply monetary policy.
It comes as speculation mounts that the eurozone central
bank will next month
expand the size, composition or duration of its
government bond-buying programme.
As with all member states, there are conditions attached to
Germany’s transfer of sovereign powers to organs
of the EU; including a prohibition on the ECB’s
engagement in economic policy. At the crux of the lawsuit is
whether the Bank’s activities are confined to the
area of monetary stability, or involve something...