Germany against the ECB's OMT
Germany's top court has begun a hearing to decide the legitimacy of the ECB's sovereign bond-buying policy. On the one hand, the program is credited for calming down the market fears concerning the currency block’s future. On the other hand, critics from Germany who include German politicians, lawyers and ordinary citizens claim that the ECB has created a risk over which German taxpayers and officials have no control. More than 35 000 of Germans brought a complaint against the ECB’s policy measure.
German ECB board member Jörg Asmussen warns the German court not to undermine euro: “When we presented the program, the euro was on the brink of a disorderly break-up. The ECB had to make clear to all speculators: do not take on the ECB; the euro will be defended. If the OMT program had to be rolled back, it would have considerable consequences.”
Independent watchers doubt that believe the EU-friendly court can halt the OMT program, but they could demand safeguards or refer the case to the European Court of Justice in Luxembourg. Any doubts on the program’s future would increase pressure on the single currency.