12-01-15

ECB’s bond purchasing program in the limelight this Wednesday

The advocate general of the European Court of Justice will provide his opinion on the legality of the ECB's backstop for sovereign bonds

The future of the OMT program will be decided at the ECJ

The legal dispute about the European Central Bank’s OMT government bond purchasing program will enter a next stage at the European Court of Justice (ECJ) on Wednesday. The advocate general Pedro Cruz Villalon will provide his opinion on the legality of the ECB’s backstop for sovereign bonds, following a request from the German Constitutional Court. cep expert Bert Van Roosebeke told Austria’s Der Standard that the ECJ in the end will most likely set only very abstract criteria for the OMT and leave the rest to the German Constitutional Court. The German judges might then have to decide if possibly unlimited ECB government bond purchases put the budget powers of the German parliament at risk.