(Update with comments spokesman for German Finance Ministry, further reactions market) LUXEMBOURG / FRANKFURT, January 14 (Reuters) – It ‘an indirect go-ahead to the option that the European Central Bank subscribes directly Treasury securities that of the euro zone’ Advocate General of the European Court of Justice. An announcement of ‘QE’ on the government could come as early as next week. Of course, there, as usual, conditions. From the reaction of financial markets it is clear that the decision is read as an imprimatur to the infamous ‘quantitative easing’ on the government. While the euro / dollar slides to new low of nine years to break the threshold of 1,727 – the level of the launch in January 2009 – the yield on benchmark ten-year French, Belgian, Finnish, Austrian and Dutch door nth negative record forever. They celebrate even the BTP, with the rate on ten-year fall to new record low 1.70% up in the area with the next possible target of 1.55%. Asked to rule on the legality of the program now Omt announced in 2012 but never used – mainly because of skepticism German – the attorney general of the EU Court Pedro Cruz Villalon judges that do not constitute a breach of European laws. The court blesses so in principle the option of purchases of government bonds for months ago to discuss councilors ECB, Germany and ‘purists’ against the line more expansive led by Mario Draghi. From Berlin, the spokesman of the Federal Ministry of Finance welcomes an opinion that “clarifies” but noted that the pronouncement of Luxembourg strengthens the position of which is the German government. Returning to the opinion of Cruz Villalon, the caveat meanwhile appears insignificant. The attorney general is confined to demand that operations do not involve direct financial assistance to a single country in the euro zone, a condition which is already planned from Frankfurt presenting the instrument. More …
No comments:
Post a Comment