Quantitative easing measures of the European Central Bank "There is a part that is unconstitutional" German court May 6, 5:59
Regarding the purchase of government bonds of each country called "quantitative easing measures" promoted by the European Central Bank, which is responsible for monetary policy in the euro area such as Germany, the German court said on the 5th that there was an unconstitutional part, three He said he would have to stop buying German government bonds if the need for policy was not proven within a month.
The European Central Bank is pursuing quantitative easing measures to purchase a large amount of government bonds in each country and to supply a large amount of money to the market in order to support the eurozone economy.
A group of German economists argued that this could undermine fiscal discipline, and was suing for legality.
On the 5th, the German Federal Constitutional Court pointed out that it was unconstitutional, saying that it was a problem that the German government and the parliament did not give proper evaluation when implementing the quantitative easing measures.
He also decided that if the Central Bank of Europe did not prove the need for policy within three months, it would have to stop purchasing JGBs through the Deutsche Bank.
The purchase of assets as an emergency measure for the new coronavirus is not included in the scope of this judgment and has no effect.
However, with little room for interest rate cuts for the European Central Bank, quantitative easing measures are an important means of monetary policy, and may affect future policy decisions.