European court: ECB bond purchases in line with EU law

The European Union's top court has ruled that the European Central Bank's government bond-buying stimulus program is in line with EU law and doesn't exceed the bank's mandate.

The ECB launched the purchases in March 2015. It's on course to wrap up its 2.5 trillion euro ($2.85 trillion) stimulus at the end of the year.

Germany's Federal Constitutional Court asked the European Court of Justice about the program's validity under EU law as it considers complaints against the bond purchases.

The Luxembourg-based EU court said Tuesday that the program "does not exceed the ECB's mandate."

It said "the program falls within the area of monetary policy, in respect of which the EU has exclusive competence for the member states whose currency is the euro, and observes the principle of proportionality."