Just a few weeks before the ECB’s key meeting (4th June), Lagarde has responded to Germany with the biggest weekly purchase since the start of the pandemic: 44 billion euros, 54% higher than the weekly average since April. Furthermore, Olli Rehn affirmed that the German Constitutional Court’s ruling could have an impact on the central banks’s ability to exercise its price stability mandate.
Germany’s constitutional court
MADRID | By Julia Pastor| German judges are removing uncertainties little by little. The country’s Constitutional Court confirmed on Tuesday that the European Mechanism of Stability is legal and does not damage the Bundestag’s budget. Furthermore, they also approved euro zone’s fiscal pact. The court had brought an appeal against constitutionality of both treaties in June of 2012. The third appeal regarding ECB’s bond purchase program is still pending of a sentence, however, and apparently it would be more difficult to solve: Karlsruhe’s court has required European Court of Justice to decide against the program following the arguments -more economic than legal- that Bundesbank has handed to them.