On May 5, the Federal Constitutional Court of Germany asked the European Central Bank to submit a review plan for its asset purchase program (PSPP) within three months, or force the Bundesbank to ban participation in future asset purchases plan and sell related assets. The economy is already bad enough that it is too late for bond purchases (QE), and now there is a plan that Germany may stop participating in bond purchases? Although this time is mainly aimed at the European Central Bank's government bond purchase program (PSPP) in the past few years, and has not yet reviewed the Pandemic Emergency Purchase Programme (PEPP), the German court's move is still tantamount to hitting the European Central Bank. a slap. Why does it do this? How did the whole thing come about?
Let's listen to what M square has to say. Foreword: The European Central Bank's Asset Purchase Programme in Brief Let’s review the European Central Bank’s asset purchase program (QE) first, so that we can continue to discuss in depth, the reasons and implications of the German court’s decision in this dispute. 1. Asset Purchase Programme (APP) wedding photo retouching services In March 2015, the European Central Bank announced a large-scale asset purchase program, commonly known as QE bond purchases. The European Central Bank will purchase various assets at a monthly increase of 60 billion yuan. The APP is currently ongoing and only temporarily suspended from January 2019 to October 2019. The monthly purchase scale has been adjusted with the European economy and prices,
and the maximum was once as high as 80 billion euros per month. It is currently 20 billion euros per month, and after the epidemic, an additional 120 billion euros of purchases will be made in 2020. 2. Public Sector Purchase Programme (PSPP) It is the main sub-plan of the APP plan. The main assets purchased are sovereign bonds of various countries, accounting for more than 80% of the entire APP. As of the end of 2019, it has accumulated 2.1 trillion euros of public bond assets. The PSPP plan was also reviewed by the German court and ruled that the asset purchase plan may exceed its authority. 3. Pandemic Emergency Purchase Programme (PEPP) On March 18, 2020, the European Central Bank launched an asset purchase plan with a scale of 750 billion euros in response to the epidemic, and then abolis