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Significance
Far from being nonplussed by Germany’s Constitutional Court ruling of May 5 that the ECB’s Public Sector Purchase Programme (PSPP) may be illegal, it doubled the programme on June 4.
Impacts
The ECB may have to justify its policies based on ill-defined and varying economic and fiscal goals that may diverge across member states.
The European recovery plan agreed on July 21 will ease pressure on the ECB to intervene to avoid sovereign debt market disruptions.
Delayed due to COVID-19, the ECB policy strategy review may end in mid-2021; the price target may be reworded to allow more flexibility.
Keywords:
EU,
EUR,
INT,
Germany,
INTERNATIONAL,
economy,
banking,
bonds,
monetary,
regional,
capital flows,
fiscal,
government,
growth,
policy,
prices,
summit,
talks,
Banks,
Capital markets
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2020
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