ECB/Asmussen: Introductory statement by the ECB in the proceedings before the Federal Constitutional Court

11 June 2013

At the hearing, Asmussen commented on the ECB's monetary policy mandate, and particularly the decision taken by the Governing Council of the ECB in respect of the bond-buying programme, Outright Monetary Transactions (OMTs).

Summarising his arguments, Asmussen said:

• The announcement of OMTs was and is the necessary and appropriate step to eliminate the disruption in the transmission of monetary policy caused by concerns that there would be an unwanted break-up of the euro. The risks of not acting would have been greater.
• The ECB and its decision-makers are aware of the limits of its monetary policy mandate. Their measures are aimed at maintaining monetary policy transmission and preventing an unwanted break-up of the euro. It is not allowed to, is not able to and does not want to replace the actions of democratically elected governments. Quite the opposite. The OMT programme is therefore aimed at protecting the market mechanism so as to urge the Member States to make the necessary reforms.
• The ECB will decide completely independently – on the basis of its own assessment of the situation – when and whether to intervene on the secondary market for government bonds for monetary policy reasons.
• Not only do the framework conditions set by the Governing Council of the ECB for OMTs ensure that the ECB acts within its monetary policy mandate, they also ensure compliance with EU law, particularly the prohibition of monetary financing.

Full speech

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