LUXEMBOURG (Reuters) – A senior legal adviser to the highest court in the European Union advised on Wednesday approved a previous bond purchase plan of the European Central Bank, the condition that the ECB is not involved directly in an assistance program for countries that benefit from it.
Pedro Cruz Villalon, attorney general of the European Court of Justice, said that although the ECB can legally carry out such purchase plan -called OMT- bonds would have to provide justification to enable it.
He said the program was necessary and balanced because the ECB took a risk that would endanger their solvency.
Although the opinion of Wednesday only refers to a bond purchase plan approved in 2012 -designed at the peak of the crisis in the euro debt in order to prevent the fall of dangerous countries could influence in the form of the program of buying government debt that the ECB could launch next week.
(Reporting by John O’Donnell editing by Madrid;. Edited by Carlos Mesa Aliaga via Santiago)
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