German central bank Bundesbank has been keen on seeing that no entity is overstepping its mandates.

Bundesbank and the European Central Bank (ECB) are currently studying the legality and limits of the ECB's bond purchase programme in order to determine under what circumstances it would breach EU treaties, Der Bild reports.

Article 123 of the Lisbon Treaty reads:

"Overdraft facilities or any other type of credit facility with the European Central Bank or with the central banks of the Member States in favour of Union institutions, bodies, offices or agencies, central governments, regional, local or other public authorities, other bodies governed by public law, or public undertakings of Member States shall be prohibited, as shall the purchase directly from them by the European Central Bank or national central banks of debt instruments."

Der Bild adds that the case could be referred to the European Court of Justice and that the ECB and Bundesbank wanted to "arm" themselves for this scenario.

Yesterday, the Bundesbank had some critical words for the International Monetary Fund (IMF), "accusing officials of spraying around money like confetti," The Daily Telegraph reported.

SB

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