Bertelsmann Stiftung; Hertie School Jacques Delors Centre (ed.)

Sebastian Grund

Legal, compliant and suitable: The ECB's Pandemic Emergency Purchase Programme (PEPP)

  • 1. edition 2020, 9 pp (PDF)
  • Free of charge

It argues that the PEPP is compatible with EU law because it meets the three criteria the Court of Justice of the EU has established to check the legality of monetary policy measures: First, the PEPP falls within the ECB’s mandate. Second, it respects the principle of proportionality. And third, it does not violate the prohibition of monetary financing. This assessment even holds if the ECB were to relax some of the constraints in the PEPP like the issuer limit currently applicable to other bond-buying programmes.