Rehn Says German Court Trying to Interfere With ECB Independence
Rehn Says German Court Trying to Interfere With ECB Independence
(Bloomberg) -- Germany’s top court is trying to interfere with the independence of the European Central Bank by ruling that a crisis-fighting program is potentially unconstitutional, according to policy maker Olli Rehn.
Rehn, a member of the central bank’s Governing Council, said the ruling could have a far-reaching impact on the ECB’s ability to deliver on its price-stability mandate, according to an interview with Finnish newspaper Helsingin Sanomat.
The remarks by Rehn, who is also the Finnish central bank governor, are the most pointed criticism of the German court by a top ECB official. The ruling has already sparked a spat between Europe’s top courts and prompted a threat by the European Commission to sue Germany.
“The German constitutional court is attempting to interfere with central banks’ independence or their freedom to decide on monetary policy,” Rehn said, according to the newspaper.
“Putting limits on the central bank’s independence would have far-reaching consequences on the ECB’s ability to practice monetary policy in line with its price-stability mandate.”
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