January 22, 2015 / 2:30 PM / 3 years ago

Senior German conservative slams ECB bond-buy plan

BERLIN (Reuters) - Senior German conservative lawmaker Hans Michelbach attacked the European Central Bank’s (ECB) decision to start a quantitative easing programme to boost the flagging euro zone economy on Thursday, saying the bank was breaking rules on state financing.

“The European Central Bank is not only breaching the ban on state financing with its sovereign bond-buying programme,” said Michelbach, a member of the Bavarian Christian Social Union, part of Chancellor Angela Merkel’s conservative bloc.

“The decision is also an admission that the ECB’s policy of piling up opaque risks has had no practical impact on the real economy and has therefore failed,” Michelbach, also head of the conservatives on parliament’s finance committee, added.

“The ECB is getting further and further away from its mandate,” he said, adding he did not see any reason to fear deflation.

Reporting by Stephen Brown and Madeline Chambers

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