In an interview published today, ECB Executive Board member Isabel Schnabel talked down German Constitutional Court ruling that the public sector purchase programme (PSPP) is partly unconstitutional. She noted that European Court of Just has “exclusive jurisdiction” over ECB and its actions. The PSPP was already ruled legal in 2018.
Hence, “we will continue to conduct the PSPP and the pandemic emergency purchase programme (PEPP), as well as our other monetary policy measures, in line with our mandate.” She also emphasized that “the primacy of EU law is key for the functioning of the European Union.
Turning to the economy, Schnabel said Eurozone is “indeed facing a very deep economic crisis, on top of a humanitarian crisis”. A “broad set of measures” was adopted by ECB including the new PEPP. “we stand ready to adjust the size and duration of the programme if needed”.
