Euro­pean court up­holds a key anti-cri­sis pro­gram

The China Post - - INTERNATIONAL -

The Euro­pean Court of Jus­tice has de­liv­ered a rul­ing strength­en­ing the Euro­pean Cen­tral Bank’s hand in in­ter­ven­ing in fi­nan­cial mar­kets — back­ing that could come in handy amid fears Greece will de­fault on its debts and pos­si­bly leave the 19-coun­try euro cur­rency union.

In a de­ci­sion Tues­day in Lux­em­bourg, the court up­held the ECB’s 2012 of­fer to buy the bonds of coun­tries whose gov­ern­ments face ex­ces­sive mar­ket bor­row­ing costs. The of­fer has helped re­as­sure mar­kets — even though no coun­try has used it. High bor­row­ing costs can push a coun­try to need a bailout pack­age of res­cue loans, as hap­pened with Greece, Por­tu­gal and Ire­land.

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