Germany’s Constitutional Court held a public hearing on June 11 to probe whether an element of the European Central Bank (ECB) debt purchase programme – a key part of Portugal’s economy in the post-troika period – violates the German constitution.

If the Court rules that Outright Monetary Transactions (OMT) are unconstitutional, Portugal will lose access to a financial stream that is underwriting its return to the markets and avoiding a second bailout, writes the economic daily.

The OMT programme provides the ECB with the ability to backstop government bonds, in exchange for oversight and structural reforms.