Program: Ecb and Government Bonds

program: The ECB's policy was an attempt to prop up struggling economies following the sovereign debt difficulties in Greece and several other eurozone members in the aftermath of the 2008's Great Recession, according to Deutsche Welle. Read more Will the ECB stop buying government bonds The ECB had hoped that by buying government bonds, as part of its wider quantitative easing program, it would lower the interest rates faced by heavily-indebted members that were struggling to borrow more money at competitive rates on the markets. This followed several legal challenges to the measure in Germany. ECB 'has to adopt measures' The Luxembourg-based EU court said in Tuesday's ruling that the program does not exceed the ECB's mandate and that 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. Preventing the ECB and national central banks from buying bonds might in particular in the context of an economic crisis entailing a risk of deflation represent an insurmountable obstacle to its accomplishing the task assigned to it of maintaining price stability, it added. Read more A timeline of Greece's long road to recovery To exert an influence on inflation rates, the ESCB European System of Central Banks necessarily has to adopt measures that have certain effects on the real economy, the court said. (news.financializer.com). As reported in the news.