BERLIN (GERMANY) – The European Central Bank has honoured the principle of proportionality through the means of its flagship stimulus programme, German Finance Minister Olaf Scholz said. He announced the same in a letter to the president of Germany’s lower house of parliament.
Germany’s top court last month gave the ECB three months to justify bond purchases under the stimulus plan – the Public Sector Purchase Programme (PSPP) – or lose the Bundesbank as a participant.
In the June 26 letter, a copy of which was seen by Reuters, Scholz wrote: “The federal finance minister is convinced the ECB Council … has shown plausible proportionality with regard to the PSPP,” Scholz wrote.
(Photos syndicated via Reuters)
This story has been edited by BH staff and is published from a syndicated field.