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Jan 14, 2015

EU court adviser sees no major hurdles to ECB bond-buying

LUXEMBOURG (Reuters) – A European Central Bank bond-buying plan floated in 2012 would not break EU law subject to certain conditions, a top adviser to the European Union’s highest court said on Wednesday.

Pedro Cruz Villalon, advocate general at the court, said while the ECB was entitled to buy bonds and that the scheme outlined was “necessary” and “proportionate”, it would first have to spell out its justification and remove itself from any direct aid programme to a euro zone member state.

Jan 13, 2015

ECB bond-buying gets legal test at European court

LUXEMBOURG, Jan 14 (Reuters) – An adviser to Europe’s top
court will deliver an opinion on Wednesday that could either
ease or complicate European Central Bank plans for printing
money to boost the struggling euro zone economy.

Advocate General Pedro Cruz Villalon will respond to a
challenge to the legality of an earlier, unused bond-buying
scheme that a group of Germans, from politicians to academics,
have questioned.

Jan 11, 2015

Legal challenge shows rocky path to ECB money-printing

FRANKFURT (Reuters) – A landmark legal opinion this week will remind the European Central Bank of the limits it faces as it advances towards money printing, while a tumbling oil price saps inflation in debt-strained Europe.

With expectations high that the ECB is on the verge of buying government bonds with new money to shore up the economy, an influential adviser to Europe’s top court will give his view on Jan. 14 about an earlier unused bond-buying scheme.

Dec 19, 2014

ECB considers making weaker euro zone states bear more QE risk -sources

FRANKFURT, Dec 19 (Reuters) – European Central Bank
officials are considering ways to ensure weak countries that
stand to gain most from a fresh round of money printing bear
more of the risk and cost.

Officials, who spoke on condition of anonymity, have told
Reuters that the ECB could require central banks in countries
such as Greece or Portugal to set aside extra money or
provisions to cover potential losses from any bond-buying,
reflecting the riskiness of their bonds.

Dec 19, 2014

Exclusive: ECB considers making weaker euro zone states bear more QE risk – sources

FRANKFURT (Reuters) – European Central Bank officials are considering ways to ensure weak countries that stand to gain most from a fresh round of money printing bear more of the risk and cost.

Officials, who spoke on condition of anonymity, have told Reuters that the ECB could require central banks in countries such as Greece or Portugal to set aside extra money or provisions to cover potential losses from any bond-buying, reflecting the riskiness of their bonds.

Dec 19, 2014

Exclusive: ECB considers making weaker euro zone states bear more quantitative easing risk – sources

FRANKFURT (Reuters) – European Central Bank officials are considering ways to ensure weak countries that stand to gain most from a fresh round of money printing bear more of the risk and cost.

Officials, who spoke on condition of anonymity, have told Reuters that the ECB could require central banks in countries such as Greece or Portugal to set aside extra money or provisions to cover potential losses from any bond-buying, reflecting the riskiness of their bonds.

Dec 18, 2014

ECB’s Draghi tells European leaders: hurry investment and reform

BRUSSELS (Reuters) – The president of the European Central Bank urged the region’s leaders on Thursday to speed along a new EU investment plan and renewed his calls for economic reform.

At a meeting of European Union leaders including Germany’s Angela Merkel and France’s Francois Hollande, Mario Draghi warned of the fragile state of the euro zone’s economy where inflation is low as oil prices tumble, according to people briefed on discussions.

Dec 12, 2014

Draghi to urge European leaders to reform to back ECB stimulus

FRANKFURT (Reuters) – The head of the European Central Bank is set to tell European leaders in stark terms at a summit next week that they need to reform straggling economies or risk blunting an ambitious monetary offensive to help revive the stagnant euro zone.

As the central bank inches closer to printing money to buy government bonds, Mario Draghi has become increasingly worried about slack reform in countries such as France and Italy, which he fears will undermine the long-term boost from so-called quantitative easing (QE).

Dec 11, 2014

ECB money printing moves closer as banks show only modest interest in cheap loans

FRANKFURT, Dec 11 (Reuters) – The European Central Bank got
a lukewarm response from banks on Thursday in its fight to
revitalize the sluggish euro zone economy, adding pressure on
policymakers to start printing money next year to buy sovereign
bonds.

Banks borrowed almost 130 billion euros ($160 billion) of
four-year loans from the ECB in its latest lending round, which
is what traders had expected but brings the total take-up to
212.4 billion euros, far short of the 400 billion euro upper
limit identified for the end of the year.

Dec 8, 2014

Nowotny warns of ‘massive’ economic weakness

FRANKFURT (Reuters) – The euro zone’s economy is weakening ‘massively’, one of the European Central Bank’s policymakers warned on Monday, saying that printing fresh money to buy state bonds could help to stop the slide.

Speaking in Germany, the head of neighbouring Austria’s central bank advocated a more ambitious course for the European Central Bank, distancing himself from Germany, where many politicians and its central bank oppose such money printing.

    • About John

      "I am a Reuters correspondent in Brussels, writing about the European Union. I moved here last year from Germany, where I had reported about the financial crisis, turning up numerous scoops and even winning a prestigious business reporting award. Beforehand, I worked with The Sunday Times in London."
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