No, not the qualification matches for the Soccer World Cup 2014. I mean the start of the hearings over the legality of the ECB’s OMT program in the context of the German constitutional law. It will be a battle of economists – Jens Weidmann (Bundesbank) against Jörg Asmussen (ECB).
This wil be exciting enough, but it is also exciting (and potentially worrying) to see what the markets are going to do regarding the allaged quantitative limit on OMT operations. Any confirmation that the ECB’s bazooka may in fact, a smaller gun than presumed, may trigger again increases in bond spreads, which will be very painful, also for the Dutch banks in particular. Furthermore, it will once more show that this muddling through doesn’ work.