Prendergast Sams European Central Bank Bias

Labour MEP for Munster, Phil Prendergast, accused the ECB’s president, Mario Draghi, of political bias and interference in Member State’s public policies.


Speaking in Parliament ahead of yesterday’s plenary vote, in Strasbourg, on the European Central Bank’s recent performance tacking the economic crisis, Ms. Prendergast said:


“The European Central Bank has proved able and willing to take exceptional measures which go far beyond its remit when the stability, and even survival, of the financial sector is at risk.


“Yet, when asked about the consequences of its actions and omissions for growth and employment, the ECB hides behind its very narrow, and increasingly inadequate, terms of reference, claiming its mission is to ensure price stability, curbing inflation.


“Whatever we make of the economic premises the ECB holds dear about inflation, its blatant disregard for the unemployment levels and economic performance in the Member States lays its biases bare and shows how badly we need a new approach that prioritises public policy.


“At least, we should have an ECB that treats public exchequers and taxpayers with a modicum of the generosity shown to the banks.


Ms. Prendergast confronted president Draghi at the debate:


“Mr. Draghi, you made your views clear when you declared the death of the European Social Model. You’ve thus shown that ECB independence is not a synonym of political neutrality.


“You defend the strict conditions imposed on the bailout countries as essential for fiscal discipline. When can we expect strict conditions for banks to pass on the cheap credit you grant them onto our SMEs in the real economy?”

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!

You must be logged in to post a comment.