German court rules ECB must provide more evidence on PSPP

Germany’s federal constitutional court ruled today (May 5) that the European Central Bank must provide further legal justification for one of its large-scale asset purchase programmes.

The Treaty on the Functioning of the European Union, which governs the ECB’s actions, prohibits the central bank from monetary financing. The court said the ECB needed to provide evidence that its public sector purchase programme, or PSPP, was not monetary financing. But its ruling stopped short of declaring the