Estimated read time: Less than a minute
This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.
BERLIN (AP) — The European Union's top court has ruled that the European Central Bank's government bond-buying stimulus program is in line with EU law and doesn't exceed the bank's mandate.
The ECB launched the purchases in March 2015. It's on course to wrap up its 2.5 trillion euro ($2.85 trillion) stimulus at the end of the year.
Germany's Federal Constitutional Court asked the European Court of Justice about the program's validity under EU law as it considers complaints against the bond purchases.
The Luxembourg-based EU court said Tuesday that the program "does not exceed the ECB's mandate."
It said "the program falls within the area of monetary policy, in respect of which the EU has exclusive competence for the member states whose currency is the euro, and observes the principle of proportionality."
Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.