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May 05, 2020 The German Constitutional Court has confirmed that the ECB's public securities purchase program, or QE, respects the federal laws of Germany, a decision that allows the Bundesbank to continue to actively participate in it. The decision also shelters the € 750 billion pandemic purchase program launched by the ECB on March 18 to counter the impact of the coronavirus on the eurozone economy. The court expressed 7 votes in favor and only one against. The thesis of the promoters of the appeal to the German Constitutional Court, a group of academics and entrepreneurs, was that the ECB had gone beyond its powers in launching Qe in 2015, believing that this instrument encourages States not to follow a virtuous path of consolidation of you count knowing that you can count on the ECB's safety net.  


The Court announced that it had "found no violation of the state budgetary non-financing rule" in the ECB's securities purchase programs. At the same time, however, in the statement on a highly anticipated ruling by the markets, the Teutonic High Court notes "violations" by the government for not having adequately committed the ECB on the implementation of the purchase programs and in particular for these operations to follow the proportionality criteria required. For this reason "the Bundesbank - states the sentence of the German Court - may not participate further in the implementation of the decisions of the ECB, until the ECB Council adopts a new decision that demonstrates in an understandable and substantial way that the monetary policy objectives pursued they are not disproportionate. "