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We should be wary of removing the ECB from the troika to facilitate the use of outright monetary transactions

Otero-Iglesias, Miguel (2015) We should be wary of removing the ECB from the troika to facilitate the use of outright monetary transactions. LSE European Politics and Policy (EUROPP) Blog (19 Jan 2015). Website.

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Abstract

A key legal debate in the context of the Eurozone crisis is whether so called ‘Outright Monetary Transactions’(OMT), which would allow the European Central Bank (ECB) to buy unlimited numbers of government bonds in secondary markets, are compatible with European law. The latest development in this debate came last week when one of the Advocates General of the European Court of Justice (ECJ), Pedro Cruz Villalón, stated that in principle OMT would be legal under the correct conditions, which include removing the ECB from the ‘troika’ which oversees financial support to Eurozone countries. Miguel Otero Iglesias writes that while the ECJ is not expected to give a full ruling until the autumn, political leaders should be cautious about removing the ECB from the troika without creating a new institution capable of filling its role.

Item Type: Online resource (Website)
Official URL: http://blogs.lse.ac.uk/europpblog/
Additional Information: © 2015 The Author(s)
Divisions: LSE
Subjects: H Social Sciences > HB Economic Theory
J Political Science > JN Political institutions (Europe)
Date Deposited: 30 Mar 2017 08:14
Last Modified: 15 Oct 2021 23:21
URI: http://eprints.lse.ac.uk/id/eprint/71553

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