LUXEMBOURG (Reuters) – The Advocate General of the Court of the European Union gave a favorable opinion to the plane of bond buying by the ECB provided that the central bank is not directly involved in an assistance program for the countries benefiting from them.
According to the Advocate General Pedro Cruz Villalon, the ECB has the right to make such purchases of securities but must also outline its reasons to activate the so-called program Omt.
The program, he said the attorney general, was necessary and proportionate because the ECB has not taken a risk that the would make it vulnerable to insolvency.
Although the opinion today looks to a model of bond buying in 2012, thought the height of the crisis to prevent the collapse of the euro by helping countries in difficulty, could determine the shape of the future QE to purchase sovereign bonds.
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