ECB shows flagship stimulus plan is proportional: Finance Minister Scholz
Europe

ECB shows flagship stimulus plan is proportional: Finance Minister Scholz

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.

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