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ECB bond-buying is legal

January 14, 2015

The European Court of Justice has provided a non-binding opinion that confirms the legality of the European Central Bank's bond-buying scheme. That program has been challenged by economists and politicians in Germany.

https://p.dw.com/p/1EJoM
European Central Bank headquarters in Frankfurt, Germany (Photo: DANIEL ROLAND/AFP/Getty Images)
Image: Daniel Roland/AFP/Getty Images

The European Union's top court said Wednesday the European Central Bank's bond-buying program, known as quantitative easing, was legal.

In an opinion released by an advocate general at the European Court of Justice, the body said the scheme to buy government bonds was legitimate and in line with monetary policy. The opinion was non-binding. A final ruling by a 15-judge panel is expected in the next six months.

The ECB's bond-buying plans fall under its so-called Outright Monetary Transactions (OMT) program, which has been met with stark opposition from many German policymakers.

Also on Wednesday, ECB President Mario Draghi said the bank's options were limited when it came to shoring up the eurozone economy and fending off a deflationary spiral.

"All members of the ECB's governing council are determined to fulfill our mandate," Draghi told Germany's Die Zeit weekly. "Of course there are differences about how we can do that. But it's not as if we have an endless amount of possibilities."

cjc/sgb (AFP, dpa)