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Friday, February 07, 2014

German Court Refers Complaint Against ECB to European Court

The German Federal Constitutional Court has decided to refer a complaint against the ECB's "unlimited" bond-buying programme to the European Court.

The German Federal Constitutional Court stated:
"In the view of the Senate, there are important reasons to assume that it exceeds the European Central Bank’s monetary policy mandate and thus infringes the powers of the Member States, and that it violates the prohibition of monetary financing of the budget."
It will rule on the legality of the eurozone's permanent bailout scheme, the European Stability Mechanism (ESM), on March 18.

Thus the Euro continues to endure a period of uncertainty, which needless to say negatively impacts on its "value" when measured against other currencies, and plays into the hands of the monetarist hawks in the Northern region of the eurozone who wish to increase rates at the expense of the millions who are unemployed in the Southern region of the eurozone.

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