Germany's Constitutional Court has decided to refer a complaint against the European Central Bank's Outright Monetary Transactions (OMT) program, which allows the ECB to buy sovereign debt in the secondary market, to the European Court.
The German court believes there are "important reasons to assume that it exceeds the European Central Bank's monetary policy mandate and thus infringes the powers of the member states, and that it violates the prohibition of monetary financing of the budget."
However, the court "also considers it possible that if the OMT Decision were interpreted restrictively," it could be legal.
The court is due to rule on the legality of the eurozone's permanent bailout scheme, the European Stability Mechanism, on March 18.
This is "huge," tweets Reuters Jamie McGeever. Is "Germany giving up (its) veto, opening (the) door to outright QE?"
The euro, which was bumbling fairly innocuously, has taken a bit of a dive and is -0.2% at $1.3564. The DAX is -0.1%. (PR)