In mid-2012, many experts
were betting that the Eurozone would fall apart -- southern European countries couldn’t
access retail bond markets, and northern European countries were not prepared
to help. But Mario Draghi, the president of the European Central Bank (ECB),
vowed to do “whatever it takes,” and announced the Outright Monetary Transactions
program, where the bank would buy large volumes of the government bonds of
distressed countries. Now, several German plaintiffs are arguing before the
European Court of Justice that “whatever it takes” was actually illegal, and
beyond the scope of the ECB’s power.
The Wall Street Journal discusses the legal issues in the case, and how a ruling against the
ECB could jeopardize current programs.
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