By John O’Donnell LUXEMBOURG (Reuters) – The European Central Bank managed on Wednesday crucial support to its commitment to do whatever is necessary to support the euro, after a major legal advisor to the highest court in the European Union withdrew an obstacle to plans to buy government bonds to boost the economy of the euro zone. Pedro Cruz Villalon, attorney general of the European Court of Justice, said the bond purchase plan developed by the ECB in 2012, at the height of the crisis in the euro zone to avoid breaking the single currency and that has not been used so far, is not contrary to European law . This review represented a clear setback for German critics Cart bond, and who argue that the ECB would reward countries with cheap credit wasteful printing more money and avoiding painful reforms. ” The OMT program (Direct Monetary Operations, for its acronym in English) (…) is within the monetary policy of the Treaty (EU) responsible the ECB, “said Cruz Villalon, in an opinion which was enthusiastically welcomed by financial markets. The euro moved through below its launch for the first time in a decade after the publication of the review, understood by investors as a green light to the ECB to continue with their plans. The opinion of counsel, which is usually followed by the judges of the court, was a milestone in a long dispute about printing money and the limits of the powers of the central bank between the ECB and Germany, the largest member of the bloc of 19 countries. The German Finance Ministry welcomed the review, ensuring that brings clarity and supports the backing of Berlin to the program. But other critics were surprised by the leeway to offer this opinion to the ECB. Continued …
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