Germany's top court to examine if ECB's bond-buying is legal

The OMT -- or Outright Monetary Transactions -- programme was unveiled in 2012, at the height of the eurozone sovereign debt crisis, as the ECB's weapon to warn off investors from speculating on government bondsGermany’s constitutional court will from Tuesday examine whether the ECB overstepped its mandate through a scheme to potentially buy unlimited amounts of government debt, as the bank prepared to ramp up its bond purchase programme. The OMT — or Outright Monetary Transactions — programme was unveiled in 2012, at the height of the eurozone sovereign debt crisis, as the ECB’s weapon to warn off investors from speculating on government bonds. The German top court’s ruling would focus on the now likely defunct measure but could have a bearing over the ECB’s ongoing 1.1 trillion euro bond buying programme until March 2017.

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