May 11, 2020 / 6:36 AM / 19 days ago

ECB's German board member pushes back against her country's top court

FILE PHOTO: Isabel Schnabel, member of the German advisory board of economic experts attends the 29th Frankfurt European Banking Congress (EBC) at the Old Opera house in Frankfurt, Germany November 22, 2019. REUTERS/Ralph Orlowski

FRANKFURT (Reuters) - The European Central Bank’s German board member said on Monday that only the European Court of Justice has jurisdiction over the central bank, serving a rebuke to her country’s highest court.

Germany’s Constitutional Court ruled last week that the ECB had overstepped its mandate with 2 trillion euros worth of sovereign bond purchases since 2015 and ordered Germany’s central bank to exit the scheme unless then ECB can prove the its legality within the next three months.

“We will continue to conduct the public sector purchase programme and the pandemic emergency purchase programme, as well as our other monetary policy measures, in line with our mandate,” ECB board member Isabel Schnabel told Italian newspaper La Repubblica.

“The European Court of Justice has exclusive jurisdiction over the ECB and its actions,” she added.

Addressing the court’s accusation that the ECB was conducting economic rather than monetary policy, Schnabel said the bank was continuously assessing whether its measures were “suitable, necessary and proportionate”.

To read the full text of the interview, please click on: here~4e8f649287.en.html

Reporting by Balazs Koranyi; Editing by Toby Chopra

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