ECB bond-buying challenged

Europe’s top court yesterday heard a challenge to the European Central Bank’s landmark bond-buying scheme to contain the eurozone crisis in a case underscoring deep concerns in Germany over ECB clout.

The case comes more than two years after the ECB backed a scheme to buy government bonds, called Outright Monetary Transactions. Although the plan has since been all but mothballed, the ruling, due in the middle of next year, could have wide significance.

If successful, the action by a group of Germans would encourage other challenges to the central bank. That, in turn, could hamper the ECB’s freedom to act, such as any move towards quantitative easing or ‘printing money’ by buying state bonds across the eurozone.