Aid to the euro zone : the German mps adopt a motion of support for the ECB

This motion was adopted in response to criticisms issued last may by the German constitutional Court regarding the massive redemptions of debt of the ECB during the epidemic.

the next step in the series of legal-financial between the european central Bank (ECB) and the justice : the German mps, in the wake of the government have brought this on Thursday their support for the assistance programs of the ECB to the euro area. A motion to this effect was adopted by show of hands by a very large majority of the deputies present in the chamber, in response to the criticisms issued on may 5, in a judgment resounding by the German constitutional Court on the massive redemptions of debt of the ECB at the peak of the pandemic of sars coronavirus.

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The supreme judges had judged to be excessive and not enough "commensurate" programs of massive redemptions of debt of the ECB on the markets - 2600 billion euro for 2015 and demanded in a period of three months that the monetary institute, but also the German authorities, to explain and prove the contrary.

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In default, the Court threatened to suspend the participation of the German central bank, the Bundesbank, to the funding of these assistance plans. A disaster scenario for the euro zone because without the support of its principal economy, these interventions would be deprived of their effectiveness.

"The euro must survive,"

there was now "no obstacle to the Bundesbank to continue its purchases" of debt after the end of the ultimatum of the German judge set August 5, assured Yves Mersch, member of the executive board of the ECB, in a speech on Thursday. The main parliamentary groups of the chamber of deputies germans were of the view that the ECB has, since 5 may, brought elements of answer sufficient to demonstrate "proportionality" of its decisions and the fact that it weighs their advantages and disadvantages.

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"Germany has a superior interest to that the future of the common currency to be preserved", indicated also are the elect in this motion which was supported by a very large majority : the parties of the government coalition - conservatives of Angela Merkel and social democrats - as well as two opposition groups, environmentalists and Liberals. Only the extremes, right and left, did not want to join.

This parliamentary response comes in the wake of a decision similar position last week of the Finance minister, Olaf Scholz, describing him as the interventions of the ECB are "proportionate". The ECB had brought the June 25 response elements the judges. It had done indirectly via a document published on its website because it felt not having to be accountable to the european court - which had dubbed without ambiguity its purchases of debt in 2018 - and not to any national court.

"potential Risks" and "side effects"

She explicitait its decisions and believed that the negative effects of the absence of any support plan would have been much worse. By its purchases of debt, public and private, the ECB wants to maintain good conditions of financing and thus relieve the States and companies of the euro zone in times of crisis.

His last program of emergency response to the pandemic adopted in mid-march and which was not covered by the judgment of 5 may, rises to 1350 billion euros. Also, the fact that the ECB is to take seriously the analysis of the "potential risks" and "side effects" of its decisions should "help to communicate more balanced in our decisions in all countries, including Germany", said Yves Mersch.

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The Court of Karlsruhe considers that the case is "classified" and that she does not wish to new "office" on the subject once the responses made, said a spokesman of the Court. She did see that if new actions were filed, tending to show that the requirements have not been met. The case is, therefore may not be complete, as some eurosceptics germans, who are accustomed to proceedings against the ECB before the courts, fourbissent already in their weapons.

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"We think part if the conditions for the Bundesbank continues to participate in the" plans using the ECB "have been met", warned on Wednesday in the Sueddeutsche Zeitung, Peter Gauweiler, the former head of the conservative CSU of Bavaria and one of the plaintiffs in the case decided on may 5. And if such is not the case in his eyes, he added, "I would ask that this be prohibited".