net_left adver left

ECB nemesis Kerber weighs action against new debt shield

Friday, July 29, 2022
ECB nemesis Kerber weighs action against new debt shield © Reuters. FILE PHOTO: A symphony of light consisting of bars, lines and circles in blue and yellow, the colours of the European Union, illuminates the south facade of the European Central Bank (ECB) headquarters in Frankfurt, Germany, December 30, 2021. REUTERS/Wol

By Frank Siebelt

FRANKFURT (Reuters) - The German academic behind the European Central Bank's biggest court setback is weighing legal action against the ECB's new bond-market shield, which he sees as "blatant" aid to Italy and other debt-laden states.

Markus Kerber is taking aim at the Transmission Protection Instrument (TPI), which will let the ECB buy bonds from countries that come under what it deems unjustified market pressure, provided they follow the European Union's economic prescriptions.

The professor of public finance at Berlin's Technical University said these potentially unlimited debt purchases were chiefly aimed at helping Italy, the euro zone's biggest debtor, and that they violate European Union rules barring the ECB from financing states.

"The ECB will openly become the underwriter of state debt," Kerber told Reuters in an interview. "This is a blatant case of state financing."

He added that any purchase made under TPI could be declared "null and void" and that he was discussing with his clients whether to file a complaint against the scheme.

An ECB spokesperson said the TPI had been designed with close attention to legal safeguards and approved unanimously by the Governing Council.

Italy is widely seen as "too big to save" by means such as the euro zone bailout fund, which would not be able to cope with the costs of supporting its government in a debt crisis like the one that rocked the bloc a decade ago. Then, the ECB quashed speculation by pledging to buy unlimited amounts of bonds from any member country that received an official bailout.

Kerber has lodged multiple lawsuits against the ECB's purchases of government bonds over the years - in one case forcing the Bundesbank, as the ECB's German agent, to justify itself before the country's top court.

But most of his attempts were unsuccessful.

German judges upheld last year the ECB's massive purchases of government debt during the coronavirus pandemic. In a prior case, the European Court of Justice found that it was acceptable for the ECB not to set a cap on how much it could buy as long as appropriate safeguards were in place.

The ECB has attached several conditions to any purchase made under TPI, including that a country stick to EU fiscal rules and that its debt is deemed sustainable.

ECB President Christine Lagarde said TPI had "the safeguards that are necessary" and the Bundesbank's head Joachim Nagel said he was confident the scheme would hold up in court.

But Kerber argued the ECB's stipulation that it must intervene whenever it sees as an excessive divergence in borrowing costs between different countries runs against the EU's support for free competition.

He also criticised the ECB's decision to buy bonds from Italy, Spain, Portugal and Greece with some of the proceeds it receives from maturing German, French and Dutch debt, in a bid to cap those spreads.

"If the ECB says that a yield spread of more than 2 percentage points between Italy and Germany is unwarranted, it is replacing the markets," he said in interview.

"How would the ECB even know that?"

(Additional reporting and writing by Francesco Canepa; Editing by Catherine Evans)

Leave your comment
HOT AUTO TRADE BOT SOFTWARE adver right
APPROVED BROKERS
net_home_top HOT AUTO TRADE BOT SOFTWARE
19-08-2022 15:32:05 (UTC+7)

EUR/USD

1.0085

-0.0003 (-0.03%)

Summary

↑ Buy

Moving Avg:

Buy (8)

Sell (4)

Indicators:

Buy (6)

Sell (0)

EUR/USD

1.0085

-0.0003 (-0.03%)

Summary

↑ Buy

Moving Avg:

Buy (8)

Sell (4)

Indicators:

Buy (6)

Sell (0)

GBP/USD

1.1888

-0.0042 (-0.35%)

Summary

Buy

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (7)

Sell (1)

USD/JPY

136.57

+0.69 (+0.51%)

Summary

Sell

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (0)

Sell (11)

AUD/USD

0.6900

-0.0018 (-0.26%)

Summary

Buy

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (6)

Sell (2)

USD/CAD

1.2976

+0.0029 (+0.23%)

Summary

Sell

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (1)

Sell (7)

EUR/JPY

137.73

+0.64 (+0.47%)

Summary

Sell

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (1)

Sell (9)

EUR/CHF

0.9655

+0.0003 (+0.03%)

Summary

↑ Sell

Moving Avg:

Buy (2)

Sell (10)

Indicators:

Buy (0)

Sell (10)

Gold Futures

1,766.90

-4.30 (-0.24%)

Summary

↑ Buy

Moving Avg:

Buy (10)

Sell (2)

Indicators:

Buy (8)

Sell (0)

Silver Futures

19.172

-0.292 (-1.50%)

Summary

↑ Buy

Moving Avg:

Buy (8)

Sell (4)

Indicators:

Buy (9)

Sell (0)

Copper Futures

3.6197

-0.0118 (-0.32%)

Summary

↑ Buy

Moving Avg:

Buy (10)

Sell (2)

Indicators:

Buy (7)

Sell (1)

Crude Oil WTI Futures

89.33

-1.17 (-1.29%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (3)

Sell (6)

Brent Oil Futures

95.37

-1.22 (-1.26%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (1)

Sell (9)

Natural Gas Futures

9.088

-0.100 (-1.09%)

Summary

Neutral

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (2)

Sell (3)

US Coffee C Futures

215.03

+0.23 (+0.11%)

Summary

↑ Buy

Moving Avg:

Buy (10)

Sell (2)

Indicators:

Buy (8)

Sell (1)

Euro Stoxx 50

3,746.05

-31.33 (-0.83%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (9)

S&P 500

4,283.74

+9.70 (+0.23%)

Summary

Sell

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (0)

Sell (8)

DAX

13,570.01

-127.40 (-0.93%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (9)

FTSE 100

7,521.35

-20.50 (-0.27%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (10)

Hang Seng

19,772.50

+8.59 (+0.04%)

Summary

Neutral

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (1)

Sell (3)

US Small Cap 2000

2,000.73

+13.41 (+0.68%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (4)

Sell (2)

IBEX 35

8,348.24

-82.06 (-0.97%)

Summary

↑ Sell

Moving Avg:

Buy (2)

Sell (10)

Indicators:

Buy (0)

Sell (9)

BASF SE NA O.N.

43.087

-0.353 (-0.81%)

Summary

↑ Sell

Moving Avg:

Buy (2)

Sell (10)

Indicators:

Buy (1)

Sell (8)

Bayer AG NA

53.23

-0.83 (-1.54%)

Summary

↑ Sell

Moving Avg:

Buy (3)

Sell (9)

Indicators:

Buy (1)

Sell (8)

Allianz SE VNA O.N.

176.04

-2.48 (-1.39%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (9)

Adidas AG

165.60

-1.92 (-1.15%)

Summary

↑ Sell

Moving Avg:

Buy (2)

Sell (10)

Indicators:

Buy (2)

Sell (6)

Deutsche Lufthansa AG

6.325

-0.241 (-3.67%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (1)

Sell (9)

Siemens AG Class N

109.25

-1.01 (-0.92%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (11)

Deutsche Bank AG

8.600

-0.268 (-3.02%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (7)

 EUR/USD1.0085↑ Buy
 GBP/USD1.1888Buy
 USD/JPY136.57Sell
 AUD/USD0.6900Buy
 USD/CAD1.2976Sell
 EUR/JPY137.73Sell
 EUR/CHF0.9655↑ Sell
 Gold1,766.90↑ Buy
 Silver19.172↑ Buy
 Copper3.6197↑ Buy
 Crude Oil WTI89.33↑ Sell
 Brent Oil95.37↑ Sell
 Natural Gas9.088Neutral
 US Coffee C215.03↑ Buy
 Euro Stoxx 503,746.05↑ Sell
 S&P 5004,283.74Sell
 DAX13,570.01↑ Sell
 FTSE 1007,521.35↑ Sell
 Hang Seng19,772.50Neutral
 Small Cap 20002,000.73↑ Buy
 IBEX 358,348.24↑ Sell
 BASF43.087↑ Sell
 Bayer53.23↑ Sell
 Allianz176.04↑ Sell
 Adidas165.60↑ Sell
 Lufthansa6.325↑ Sell
 Siemens AG109.25↑ Sell
 Deutsche Bank AG8.600↑ Sell
Mua/Bán 1 chỉ SJC
# So hôm qua # Chênh TG
SJC Eximbank6,600/ 6,700
(0/ 0) # 1,726
SJC HCM6,620/ 6,720
(0/ 0) # 1,746
SJC Hanoi6,620/ 6,722
(0/ 0) # 1,748
SJC Danang6,620/ 6,722
(0/ 0) # 1,748
SJC Nhatrang6,620/ 6,722
(0/ 0) # 1,748
SJC Cantho6,620/ 6,722
(0/ 0) # 1,748
Cập nhật 19-08-2022 15:32:09
Xem lịch sử giá vàng SJC: nhấn đây!
ↀ Giá vàng thế giới
$1,753.92-4.65-0.26%
Live 24 hour Gold Chart
ʘ Giá bán lẻ xăng dầu
Sản phẩmVùng 1Vùng 2
RON 95-V25.34025.840
RON 95-III24.66025.150
E5 RON 92-II23.72024.190
DO 0.05S22.90023.350
DO 0,001S-V24.88025.370
Dầu hỏa 2-K23.32023.780
ↂ Giá dầu thô thế giới
WTI$89.05+1.21.33%
Brent$94.94+0.920.95%
$ Tỷ giá Vietcombank
Ngoại tệMua vàoBán ra
USD23.235,0023.545,00
EUR22.981,7524.268,73
GBP27.175,3928.334,31
JPY167,13176,93
KRW15,2618,59
Cập nhật lúc 15:29:06 19/08/2022
Xem bảng tỷ giá hối đoái
adver main right