ECB Bond Dispute Could Be Resolved, New German Judge Tells FAS

(Bloomberg) -- A German Constitutional court judge-designate is optimistic that there will be a solution to the dispute over the European Central Bank’s bond purchasing program, Frankfurter Allgemeine Sonntagszeitung reported.

Astrid Wallrabenstein told the newspaper it might not be necessary for the ECB council to issue a new monetary policy decision. “What counts is an improved transparency of the decisions,” she said, noting political efforts to fulfill the request made by Germany’s highest court. It’s a good sign that the European Commission and Parliament are trying to take the lead, she added.

In early May Germany’s highest court ruled that the ECB can continue its bond purchases, but will have to justify its policies within three months after the court expressed a number of concerns with the program.

Wallrabenstein said that it could be in the interest of the court to take an easier stand if the “demands are being taken seriously” and the actions taken by politicians, the German central bank and ECB “go into the right direction.”

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