Legal, compliant and suitable: The ECB's Pandemic Emergency Purchase Programme (PEPP)
Bertelsmann Stiftung, Gütersloh ; Hertie School. Jacques Delors Centre, Berlin
Bertelsmann Stiftung - Gütersloh
2020
9 p.
epidemic disease ; monetary policy ; ECB ; financing ; EU law
Policy Brief
25 March 2020
Financing and monetary policy
English
"It argues that the PEPP is compatible with EU law because it meets the three criteria the Court of Justice of the EU has established to check the legality of monetary policy measures: First, the PEPP falls within the ECB's mandate. Second, it respects the principle of proportionality. And third, it does not violate the prohibition of monetary financing. This assessment even holds if the ECB were to relax some of the constraints in the PEPP like the issuer limit currently applicable to other bond-buying programmes."
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