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This is a transparent breach of the Treaty on the Funcioning of the European Union:
Article 123
(ex Article 101 TEC)

  1. Overdraft facilities or any other type of credit facility with the European Central Bank or with the central banks of the Member States (hereinafter referred to as `national central banks') in favour of Union institutions, bodies, offices or agencies, central governments, regional, local or other public authorities, other bodies governed by public law, or public undertakings of Member States shall be prohibited, as shall the purchase directly from them by the European Central Bank or national central banks of debt instruments.

  2. Paragraph 1 shall not apply to publicly owned credit institutions which, in the context of the supply of reserves by central banks, shall be given the same treatment by national central banks and the European Central Bank as private credit institutions.
(my bold)

I believe there are no "notwithstandings" or "without prejudices" in this article...

To err is of course human. But to mess things up spectacularly, we need an elite — Yanis Varoufakis

by Carrie (migeru at eurotrib dot com) on Wed Nov 23rd, 2011 at 06:30:53 AM EST
You have an opinion? Brown people are not here to give opinions...

Go back to the mud pit.

by cagatacos on Wed Nov 23rd, 2011 at 07:16:13 AM EST
[ Parent ]
On a less sarcastic tone: It would be wise if people prepare for a major event soon, I would say... This fanatical neo-liberal religion that has stuck to the EU power elites with its dog-eat-dog mentality and destruction of the public space is completely unsustainable (not only in the long run, the whole edifice seems be ready to crumble now)
by cagatacos on Wed Nov 23rd, 2011 at 07:48:29 AM EST
[ Parent ]
Posted this comment on FAZ, to Holger Stelzner's editorial, (comments here). It seems to be going through moderation.

Why is the Bundesbank allowed to buy German 10-year bonds directly (today's auction, 39% of the offering), in flagrant contradiction with Article 123 of the Treaty on the Functioning of the European Union? Direct purchase of government debt instruments by the ECB or national central banks is prohibited by that article. Is there one law for Germany and another for the rest of Europe?
by afew (afew(a in a circle)eurotrib_dot_com) on Wed Nov 23rd, 2011 at 07:55:21 AM EST
[ Parent ]


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