ECB’s Schnabel: German ruling won’t influence policy
The European Central Bank’s (ECB) public sector purchase program (PSPP) and its pandemic emergency purchase program will continue despite the German Constitutional Court’s ruling that public sector purchases could be illegal, Member of the Executive Board of the ECB Isabel Schnabel said in an interview published on Monday. She added that it is only the European Court of Justice (ECJ) that has juristiction over EU instiutions such as the ECB.
Speaking to La Repubblica, Schanbel commented: “It is not for me to judge the legal aspects of the verdict, but its implications can clearly go beyond the ECB. The primacy of EU law is key for the functioning of the European Union.”
The banker went on to praise the ECB’s response to the coronavirus crisis, saying the central bank acted “swiftly and decisevely.” Schnabel added that despite the fact that, academically, it may be difficult to always diffrenciate between fiscal and monetary policy, the ECB is constantly assessing its measures to make sure they are “suitable, necessary and proportionate.”
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