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ECB brings in new measures to boost Eurozone Economy

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The European Central Bank has introduced certain dramatic measures to boost the economies of the countries in Eurozone.

The recession the world now faces is the biggest since the World War Two period.

This is not the first time the European Central Bank has introduced a program to boost the economies of the countries in the Eurozone region.

Earlier, it launched a similar policy, in response to the request of some badly affected countries in the southern region of the Europe such as Italy and Spain.

That means the latest policy is the second policy taken by the ECB to help the countries in the Eurozone to surmount the economic difficulties caused due to the Covid-19 outbreak.

According to the central bank, it will increase the size of its bond buying programme by €600bn to €1.35tn.

The programme will run until June 2021, which is actually six months longer than planned.

The move will keep borrowing costs low for countries and firms as they face huge budget deficits and recessions.


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Germany criticises ECB’s mass bond-buying policy

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A top court based in the European country of Germany has ruled that the mass bond-buying policy of the European Central Bank to stabilise the eurozone partly has violated the constitution of the country.

The ruling is not related to the purchase in the coronavirus crisis. It is actually connected to the government debt worth €2.1 trillion bought by the ECB since 2015.

According to the ruling of the Constitutional Court in Karlsruhe, there is not enough German political oversight in the purchases.

Italy is among the countries most reliant on ECB bond purchases because of the severe economic impact of the coronavirus pandemic.

Neither Germany nor any of the European countries have commended on this matter.


Photo Courtesy: Google/ images are subject to copyright