Reuters.com reports that German President Christian Wulff questioned the legality of the European Central Bank's bond-buying programme on Wednesday, highlighting the strength of opposition in Germany to the controversial plan.
Reportedly, Wulff added his voice to German opposition against the ECB's bond-buying programme citing a Treaty provision prohibiting the ECB from buying bonds directly from governments.
"I regard the massive acquisition of the bonds of individual states via the European Central Bank as legally questionable," he said in the opening speech at an economists' conference in Lindau, Germany. "This ban only makes sense if those responsible don't circumvent it with comprehensive purchases on the secondary market," he added, so Reuters.com reports.
The ECB buys the bonds on the secondary market. Critics of the purchases say they push the ECB into the fiscal policy arena, overstepping its mandate and threatening its independence.
