The German Court has rejected a complaint over the ECB's program

The German Constitutional Court rejected a complaint against the European Central Bank's (ECB) program to buy € 2.4 trillion in euro area public sector bonds. According to the court, the ECB has shown that this system is appropriate. Last May, the court ruled that German lawmakers did not have sufficient control over the Bundesbank, which buys bonds on behalf of the ECB. He ordered the German central bank to end this system unless the ECB demonstrated that its program was necessary and proportionate. Since that verdict, the ECB has provided the German government and parliament with a number of documents and its arguments have been accepted. "The requests (to ban the program) are unfounded given that the federal government and the Bundestag have considered and assessed the ECB's monetary policy in detail, including a proportionality assessment," the court said in a statement on Tuesday. The quantitative easing program of the euro area central bank also includes the purchase of the region's government bonds on the secondary market (Public Sector Purchase Program, PSPP), which aims to keep the growth of their yields under control. The program stipulated that each central bank would purchase a certain amount of eligible securities from its own governments. Germany is involved in the program through the Bundesbank. However, the Constitutional Court last year ordered it to suspend its participation until the ECB had demonstrated why purchases were needed. The Governing Council of the ECB was to take a decision within three months explaining in a comprehensible manner that the objectives of the Bank's monetary policy were not disproportionate. Following the launch of quantitative easing, the Federal Constitutional Court has received several incentives for the ECB to exceed its mandate, as it cannot provide loans to the state and the public sector under the European Treaty.