German Politicians Launched 3 Suits Against ECB QE

German politicians who failed in previous attempts to have courts derail European Union policy filed lawsuits at the country’s top court challenging the European Central Bank’s 1.1 trillion-euro ($1.2 trillion) asset-purchase program.

Three suits were filed over the last six months, according to Michael Allmendinger, a spokesman for the Federal Constitutional Court in Karlsruhe. Bernd Lucke, the head of political party ALFA, brought a case in September. Ex-lawmaker Peter Gauweiler said in an e-mailed statement that he also filed a complaint last month.

“With its euphemistically so-called Quantitative Easing policy, the ECB is seeking to inflame inflation by printing huge amounts of money,” said Gauweiler, who was behind a case that resulted in a ruling from the EU’s top court earlier this year. “This program is economic policy and first and foremost serves private banks from which the ECB purchases problematic loans. It is turning itself into the bad bank of Europe.”

Nine months into the bond-buying program, the main goal of spurring inflation toward the ECB’s goal of close to but below 2 percent remains elusive with price increases still largely absent from the 19-nation euro region. With the economy at risk of cooling amid weaker growth in China and a slowdown in global trade, ECB President Mario Draghi has held out the prospect of more stimulus next month, when new consumer-price and growth forecasts will be published.

via Bloomberg

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza