Paradoxically, legal challenges against the European Central Bank—the only thing holding the eurozone together—could end up cementing the bloc’s overreliance on central banking. On Tuesday, Germany’s constitutional court said the ECB should justify, within three months, why its massive purchases of government debt are “proportional” to the task of bringing inflation back to target. Italian and Spanish bonds sold off, as investors feared the ruling might compromise the central bank’s commitment to doing whatever it takes to...

Source: Wall Street Journal May 06, 2020 10:07 UTC