the opponents of The bill ions heavy bond purchases by the ECB have suffered before the European court of justice (ECJ) for a defeat. The judges in Luxembourg said on Tuesday, especially in Germany, disputed transactions would not be in breach of EU law.

The Federal constitutional court had expressed in the summer of 2017 is in doubt, whether the purchases fall within the competence of the Euro-based Bank. The judges saw “weighty reasons” that it violates the prohibition of monetary state financing.

they turned to the European court of justice, the highest EU court. Against the purchases, among other things, the CSU action was brought by Peter Gauweiler, of the AfD-founder Bernd Lucke and the Berlin-based Professor Markus Kerber.

The Central Bank had launched to tackle the Euro crisis a number of purchase programmes for securities that have the goal to push interest rates and make money more readily available. Thus, the economy, and Inflation should be stimulated.

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The ECJ had decided in 2015 to the principle that the purchase of government bonds is permitted. In the current dispute, it was now a part of the programme for the acquisition of securities of the public sector, which was launched in March 2015. Month-to-month were bought government bonds for two-digit billion amounts. In the meantime, the ECB has invested more than two trillion euros.

The Federal constitutional court in Karlsruhe had asked the ECJ for a legal assessment. From whose point of view the program could violate the ECB’s mandate and responsibilities of the EU member States.

The plaintiff to the Euro-critic Bernd Lucke and Hans-Olaf Henkel criticize that the ECB had risen through the purchase program is the largest creditor of the Euro-States. From their point of view, the ECB financed by massive government debt.

An important expert on the ECJ had rejected this view, however. A violation of the mandate of the ECB, he said in October. The program will follow, rather, the object of policy to avert the risk of Deflation. Thus, a downward spiral of falling prices and shrinking economy.

The ECB has already heralded the exit from its Anti-crisis policy. This Thursday the ECB is likely to decide to Council formally, the end of new bond purchases by year-end 2018. Abruptly, the ECB will close the money is not the locks but: the funds from expiring government and corporate bonds, to be invested by the Central Bank for the time being.

case C-493/17


Sam Yoon has many years of experiences in journalism. He has covered such areas as information technology, science, sports and politics. Yoon can be reached at 82-2-6956-6698.