The Federal Constitutional Court must again with a challenge of the monetary policy of the European Central Bank (ECB) deal. It’s about whether the monetary authorities with the extensive buying up of government and soon corporate bonds exceed their mandate and thus pass important democratic rights of the Germans.
A group of professors and entrepreneurs has to information the “Welt am Sonntag”, this week a constitutional complaint against the policy of the ECB inserted. “The ECB’s current policy is neither necessary nor appropriate, directly to stimulate the economy in the euro area by increasing the inflation rate to around two percent in consumer prices”, the Berlin lawyer Markus C. Kerber, professor of public finance and initiator said the action , the “Welt am Sonntag”.
It is a matter to hedge an institution that indeed call themselves as rule-based violence, has in effect but do not consider the rules. Under the pretext of achieving the inflation target in the medium term around two percent, the ECB would always start new programs that would have incalculable risks for the balance of the Bundesbank and thus the German taxpayer to follow.
1.74 trillion euros of bonds
Kerber describes the ECB in its submission as” sovereign dictator “, preceding the discretion and doing the” proportionality “the actions of the eyes lose. The principle of proportionality is derived from fundamental rights or the rule of law, enshrined in Article 20 of the Basic Law.
If the ECB were to make their announcement true, they would acquire through the national central banks bonds in an amount of at least 1.74 billion euros. This significant budget risks would arise for the German taxpayers who are not approved by the Bundestag. Initiator Kerber propel especially the budget risks which could arise from the new program Germany. Because unlike government bonds, where the euro members would jointly liable only for 20 percent of purchases, they would at the corporate bonds into full risk. It is a matter to hedge an institution that indeed call themselves as rule-based violence, has in effect but do not consider the rules, says Kerber.
discrimination of SMEs
in the indictment it is for corporate bond program, which should start in June: “hereby, the ECB has authorized to enter by vague credit criteria and without fixed quantitative limits in this market, the euro zone to to make paradise for corporate bonds and to distort competition. the discrimination against companies that do not finance via the capital markets, is obvious. ”
Therefore, the action is connected also some family businesses. In addition to business leaders and Kerber include the professors Gunnar Heinsson and Johann Heinrich von Stein to the applicants. The professors hope that the judges at least prevent the Bundesbank it to continue to participate in the various purchase programs of the ECB and the bond purchase program for corporate securities, to be launched in June, ever enter.
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