FRANKFURT, April 26 The Bundesbank confirmed as
genuine on Friday a leaked report prepared for Germany's
Constitutional Court that criticises the European Central Bank's
plan to buy the debt of highly indebted states.
The 29-page report, dated Dec. 21, was published by German
newspaper Handelsblatt. In it, the German central bank warned
that the purchase of stressed countries' sovereign debt could
"compromise the independence of the central bank" and could be
difficult to stop.
Bundesbank President Jens Weidmann, who has criticised the
ECB's Outright Monetary Transactions (OMT) programme several
times, will travel to Karlsruhe for Constitutional Court
hearings on June 11-12, the Bundesbank confirmed.
The OMT programme, a cornerstone of the policy response that
has helped ease the euro zone's debt crisis, was unveiled in
September, but has not been activated yet.
Weidmann appeared at the court last year when it said that
ECB bond-buying on the secondary market is prohibited if it aims
"at financing members' budgets independently of capital
markets", as this would circumvent the prohibition of monetary
Some German legal experts saw this as a veiled threat to the