41675
Germans File Complaint Against ECB Policy
World Economy

Germans File Complaint Against ECB Policy

A group of professors and entrepreneurs in Germany filed a complaint against the European Central Bank’s monetary policy this week at the country’s top court, the Welt am Sonntag newspaper said.
A complaint would open a new chapter in a long-running legal battle between Europe’s central bank and groups within the eurozone’s biggest economy who want to curb the bank’s power, Reuters reported.
A challenge to an emergency plan the ECB made at the height of the eurozone crisis is also back at Germany’s Constitutional Court after being rejected by Europe’s top court in June. The German court will make a final ruling this year.
There has been widespread criticism in Germany of the ECB’s monetary policy in recent weeks, with politicians complaining that low interest rates are hitting the retirement provisions of ordinary Germans and could boost the right wing.
Welt am Sonntag said the issue in the latest complaint filed at the Constitutional Court was whether the ECB had overstepped its mandate by extensively buying government bonds and with its plan to start buying corporate bonds.
A spokesman for the Constitutional Court could not immediately comment on the report.
The newspaper said the professors and entrepreneurs thought the ECB was starting programs that contained incalculable risks for the German central bank’s balance sheet, and hence for German taxpayers—under the pretense of reaching its inflation target of just under 2% in the medium term.
“The ECB’s current policy is neither necessary nor appropriate to directly revive the economy in the eurozone by increasing the inflation rate to around 2% in terms of consumer prices,” Markus Kerber, a lawyer and professor of public finance who initiated the complaint, was quoted as saying.
Kerber said the ECB was losing sight of the principle of the “proportionality” of its measures, according to Welt am Sonntag.
Kerber confirmed in an e-mail that he had filed a complaint.
A spokeswoman for the ECB declined to comment on the report.
In March, the ECB unveiled a large stimulus package that included cutting its deposit rate deeper into negative territory, expanding it asset buying program and offering free loans to the corporate sector to stimulate growth.
German central bank Gov. Jens Weidmann, who sits on the European Central Bank’s Governing Council, said on Wednesday the ECB’s expansionary monetary policy stance was “justified for now” while Bundesbank board member Andreas Dombret also said the ECB’s policy was justified by a subdued growth outlook in the eurozone.

Short URL : http://goo.gl/uEOGfX
  1. http://goo.gl/oyhw9a
  • http://goo.gl/71tw21
  • http://goo.gl/15LjXp
  • http://goo.gl/Yk0I2k
  • http://goo.gl/YsbhTX

You can also read ...

Report says China’s economic development must rely on integration between innovation and industrial production,  and work must be done to ensure that innovation progress was passed on to production.
China's new economy will account for an estimated 12% of the...
The process of building a new government could take weeks, so markets may well move on from the result quickly.
Politics dominated trading on Monday, with the euro sliding as...
World countries are casting a shadow on the future of the global economic system.
Next month, when finance ministers and central bank governors...
The economy’s return to growth has eased pressure  on the authorities.
Now that Nigeria’s economy is recovering from its worst slump...
One mining services company said it laid off more than 50 employees.
New laws and a crackdown on mining firms in Tanzania has...
EU Seeks Protection for Uber-Style Jobs
The European Commission said on Monday it wants more social...
US to See Slower Growth
The pace of US economic growth will stay stuck in the low 2%...
The Housing Pulse rose again, as the shortage of supply and increasing demand for properties continues to bite.
Bank of Ireland’s monthly Economic Pulse report, which...

Trending

Googleplus