The German Constitutional Court's ruling on the ECB's bond buying decision

10-02-2014

On 6 September 2012, the Governing Council of the European Central Bank (ECB) confirmed its President, Mario Draghi’s announcement that the ECB would purchase government bonds on secondary markets, known as Outright Monetary Transactions (OMT). Germany’s Federal Constitutional Court (BVerfG) was called upon to consider the legality of OMT within a case on the constitutionality of German ratification of the European Stability Mechanism (ESM).

On 6 September 2012, the Governing Council of the European Central Bank (ECB) confirmed its President, Mario Draghi’s announcement that the ECB would purchase government bonds on secondary markets, known as Outright Monetary Transactions (OMT). Germany’s Federal Constitutional Court (BVerfG) was called upon to consider the legality of OMT within a case on the constitutionality of German ratification of the European Stability Mechanism (ESM).