The European Central Bank (ECB) is pumping billions of euros into the economy by purchasing corporate bonds. The result is a massive subsidy for dozens of companies in the oil and gas business and in highway construction and car production. This policy puts the central bank of the Eurozone in sharp contradiction to the obligations of the European Union to fight climate change, according to an open letter from 75 NGOs and social movements.
The ECB has spent no less than €67 billion ($72 billion) on the programme since June 2016, adding €7-8 billion every month. The bonds are basically IOUs issued by corporations, to be repaid at a later date. When the ECB buys a bond, cheaper cash becomes available to the corporation.
