Equities

Reuters exclusively reports ECB preparing for life without the Bundesbank

Reuters exclusively reports ECB preparing for life without the Bundesbank

Reuters exclusively reported that the European Central Bank (ECB) is drafting contingency plans to carry out its multi-trillion bond-buying program without the Bundesbank in case Germany’s top court forces the main participant in the scheme to quit. In this worst-case scenario, the ECB would launch an unprecedented legal action against the German central bank, its biggest shareholder, to bring it back into the program. The moves would likely mark a moment of truth for the euro, testing Germany’s commitment to a currency it played the biggest role in creating and forcing it to tackle some deep-seated reservations within the country about ECB policies.