BERLIN (Reuters) – The European Central Bank has honoured the principle of proportionality with its flagship stimulus programme, German Finance Minister Olaf Scholz said in a letter to the president of Germany’s lower house of parliament.
Germany’s top court last month gave the ECB three months to justify bond purchases under the stimulus plan – the Public Sector Purchase Programme (PSPP) – or lose the Bundesbank as a participant.
In the June 26 letter, a copy of which was seen by Reuters, Scholz wrote: “The federal finance minister is convinced the ECB Council … has shown plausible proportionality with regard to the PSPP,” Scholz wrote.
(Writing by Paul Carrel; Editing by Maria Sheahan)
