The outspoken reluctance of the ECB president to revise the perpetual crisis mode of monetary policy increasingly destabilises the Eurosystem

Once again Mr. Draghi and Monsieur Coeuré have won the debate over QE in the Governing Council. Contrary to what has been requested by the representatives of traditional hard currency countries, the Asset Purchase Programme (APP) will remain open-ended. Far more important is Draghi’s confirmation that only the net asset purchase will decrease from January 2018 onwards. (Read more …)

On the contrary, its ruling reinterprets the ECJ’s decision and submits ECB’s OMT programme to stricter conditionality

Though formally accepting the ruling of ECJ on OMT which gave clearance to ECB’S OMT programme, the German Constitutional Court rules that Bundesbank is only allowed to implement the OMT programme if the volume of bond purchases is limited from the beginning and securities will be sold by the Eurosystem as soon as the fiscal emergency in the Eurozone state concerned is over. (Read more)

Constitutional complaint against the recent ECB policy

Since the publication of the technical features for the Corporate Sector Purchase Programme, the ECB has definitely given up its mask of monetary policy. Through the massive purchase of corporate bonds, countries with high debt level and deficits in competitiveness such as Italy, Spain and France are supposed to improve the financing conditions of public companies. (Read more)