Tags: Germany | crisis | bond | purchases

ECB Official Defends Bond Purchase Plan

Wednesday, 12 June 2013 10:19 AM EDT

A top European Central Bank official has defended the bank's key crisis backstop in a second day of hearings before Germany's Federal Constitutional Court.

Joerg Asmussen told the eight judges that the ECB's plan to purchase government bonds was only aimed at making sure the bank's monetary policy is effective, not at rescuing governments in the 17-country euro zone.

The ECB is prohibited by treaty from financing governments. But Asmussen insisted Wednesday that the ECB had not exceeded its powers with the bond purchases program: "It is not the goal to keep states from insolvency."

Critics argue the bond purchase program and other ECB measures exceed the bank's legal mandate and infringe on German law.

A decision by the court on the legality of the program is not expected for months.

© Copyright 2026 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


Markets
A top European Central Bank official has defended the bank's key crisis backstop in a second day of hearings before Germany's Federal Constitutional Court.
Germany,crisis,bond,purchases
131
2013-19-12
Wednesday, 12 June 2013 10:19 AM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved