Daily Archives: February 7, 2014

By Toby Luckhurst

  • Philip Stephens argues that the people making the strongest case for Scottish independence are the English.
  • There is open mutiny at the New York Times against the editorial page and its editor, Andrew Rosenthal.
  • Saudi Arabia is obsessed with the news, from thriving broadsheets to social media, and much of the interest lies in the uncensored press.
  • Deputy prime minister Dmitry Kozak accidentally let slip on Russian surveillance of journalists and their shower habits in his anger at the negative press response to Sochi’s unfinished accommodation.
  • Heavy snow has forced the Iranian government to ration gas in a bid to meet rising domestic need, especially in the country’s northern provinces.
  • There are fears that Norway’s sovereign wealth fund is fomenting complacency, with Norwegians taking more and more time off work.

 

Tony Barber

German Constitutional Court (Matthias Hangst/Getty Images)

We don’t like what the European Central Bank is doing – but if someone is going to drop a nuclear bomb on the eurozone, it won’t be us. This seems to be the main message in today’s judgment from Germany’s constitutional court on the ECB’s Outright Monetary Transactions programme.

The OMT is an initiative aimed at saving the eurozone with large-scale ECB purchases of the bonds of governments vulnerable on financial markets, in return for a commitment to deep-seated economic reforms. Germany’s Bundesbank and much of the German public have never warmed to the OMT – even though the programme has never actually been used and, some experts think, never will be.

So the German court’s judgment will come as a relief to Mario Draghi, the ECB president, and all those who hold that the OMT, unveiled in August and September 2012, is the single most important reason why Europe’s monetary union no longer appears in mortal danger. But mixed with this relief will be a feeling that the German court’s judgement is not entirely helpful – and that some of its arguments are not particularly well-founded.