If the ECB were to purchase only bonds from certain countries, would the OMT be considered a monetary policy tool, instead of an economic policy tool? Some German judges believed this programme would be a hidden, unfair bailout.
There are many pending questions, as JP Morgan analysts pointed out on Monday: does the OMT violate the ECB’s monetary financing prohibition? Is there a minimum rating for the bonds to be purchased? Can the ECB have a pari-passu status with the rest of investors?
The tribunal may need up to six months to rule on the matter, according to the tribunal’s annual report for 2013.After its decision is released, the case will be sent back to the German judges who will have the final say.