The German Constitutional Court announced today the ECB may violate the monetary financing laws in its asset purchase program of 2.3 trillion euros, and asked the top court in Europe to take a decision on it.
The court also noted that the program, in which the ECB sought to revive the growth of Eurozone economy through it, exceeds the bank's mandate.
"There are significant reasons the ECB decisions governing the asset purchase program violate the prohibition on monetary funding and go beyond the ECB's monetary policy mandate, which beyond the competence of member state." The court said.
Also, it said that it might ask the European Court of Justice to review the program.
For its part, in an official statement by ECB announced that the asset purchase program is still within its mandate, and that is ultimately for the ECJ to assess. The bank to continue buying assets at a value of 60 billion € monthly normally, ECB statement added.
