BERLIN (MNI) – Lars Feld, a member of the German government’s
council of independent economic advisers, the so-called five wise men,
said Wednesday the ECB would likely start buying bonds without any
conditionality should the German Constitutional Court block Europe’s
planned permanent bailout fund ESM today.
The court will deliver a ruling today on whether it will grant an
injunction against the ESM and the EU fiscal compact.
“If the ESM does not come about then the ECB will have to buy
bonds, possibly on very short notice without any conditionality,” Feld
told German ARD public television today.
The government adviser said, though, the most likely scenario is
that the court will approve the ESM.
A government spokesman on Monday also said the government “is
convinced that the ESM is in accordance with the constitution.”
President Joachim Gauck has said he will not sign the laws on the
ESM and the fiscal compact until the court has ruled on the injunction.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
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