Jolt to eurozone as German court warns against central bank stimulus
by Phillip Inman from on (#532BD)
Fears ruling could undermine ECB's authority to ward off the financial crisis and spell end of quantitative easing
Germany's constitutional court jolted eurozone investors and hit the value of the euro after judges warned that the European Central Bank's plans to flood the financial system with cheap credit could breach German law.
The bombshell ruling by the court in Karlsruhe came after judges agreed that Germany's central bank must stop cooperating with the ECB's long-running stimulus scheme within the next three months unless the ECB could prove it was not excessive.
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