While the order between the ECB`s core price stability mandate and its supervisory obligations is clear, the question of whether and how the ECB should act on its secondary objectives is much more unclear and subject to difficult compromises. Should the ECB focus on employment or the climate? Sometimes it may be possible to use different tools to achieve different goals, but sometimes this is not the case. Dealing with these trade-offs is inherently a political task and the ECB should welcome some explicit guidance on the secondary objectives most relevant to the EU in a given situation. As Benoit Cœuré, a former member of the ECB`s Executive Board, put it: “Setting priorities between different objectives is the definition of policy […] and that is what parliaments do. Nevertheless, he says, “there is no point in talking about a eurozone government if we do not say to which democratic body this government will be accountable”, a real eurozone parliament, to which a finance minister would be accountable, seems to be the real priority of the economist, who also denounces inaction in this area. [145] In 2013, an interinstitutional agreement was concluded between the ECB and the European Parliament in the framework of the establishment of ECB Banking Supervision. This agreement gives the European Parliament broader powers than current monetary policy practice in the ECB`s activities. For example, under the agreement, Parliament can veto the appointment of the Chair and Vice-Chair of the Supervisory Board of the ECB and allow revocations at the request of the ECB. [115] The creation of a sub-committee within the current European Parliament was also mentioned along the lines of the Eurogroup, which is currently a sub-body of the ECOFIN Committee. This would require a simple amendment of the Rules of Procedure and would avoid competition between two separate parliamentary assemblies. The former president of the European Commission had also said on this subject that he had “no sympathy for the idea of a specific parliament of the euro zone”.

[146] Due to copyright agreements, we ask that you send an email to [email protected] requesting the publication of printed opinions. The European Central Bank`s main monetary policy instrument is secured credit or reverse repurchase agreements. [69] These instruments are also used by the US Federal Reserve, but the Fed buys financial assets more directly than its European counterpart. [70] The collateral used by the ECB is generally high-quality public and private debt. [69] The European Parliament reached an important milestone in December 2020 by calling for an interinstitutional agreement on the ECB`s accountability framework, which has so far been largely informal. The upcoming negotiations between the ECB and Parliament, in addition to the ongoing review of the ECB`s strategy, offer a unique opportunity to improve a robust accountability process directly with the ECB, while fully respecting its independence. At the reasoned request of the Chair of the Supervisory Board or the Chair of the competent committee of Parliament and by common accord, representatives of the ECB on the Supervisory Board or high-level members of the supervisory staff (Managing Directors or their alternates) may participate in the ordinary hearings, the ad hoc exchange of views and the confidentiality meetings. This Agreement is without prejudice to the responsibility of the competent national authorities before national parliaments in accordance with national law. The bank`s first president was Wim Duisenberg, the former president of the Dutch Central Bank and the European Monetary Institute. [6] While Duisenberg was at the head of the EMI shortly before the creation of the ECB (successor of the Belgian Alexandre Lamfalussy)[6], the French government wanted to make Jean-Claude Trichet, the former head of the French central bank, the first president of the ECB. [6] The Frenchman argued that since the ECB should be based in Germany, its president should be French. The German, Dutch and Belgian governments opposed it, which regarded Duisenberg as the guarantor of a strong euro.

[7] Tensions were reduced by a gentlemen`s agreement in which Duisenberg was to resign before the end of his term and be replaced by Trichet. [8] The S&D Group in the European Parliament is leading efforts to reach a formal interinstitutional agreement between the ECB and the European Parliament. In October last year, the S&D Group launched its initiative. The negotiating mandate was formally adopted by the political leaders of the European Parliament at the Conference of Presidents on 9 December 2020. The chair of the Economic and Monetary Affairs Committee, Irene Tinagli, will now turn to ECB President Christine Lagarde to start negotiations between the two institutions. Ahead of a plenary debate with European Central Bank (ECB) President Christine Lagarde on the European Parliament`s 2020 Annual Report, the S&D Group stressed the need for the ECB to continue its active monetary policy to accelerate the recovery and called on the ECB to step up its sustainability efforts. The S&D Group is leading efforts to reach a formal interinstitutional agreement between the ECB and Parliament that would ensure greater democratic accountability as the ECB`s powers increase. This Agreement shall not affect or affect the responsibility and reporting of the SSM to the Council, the Commission or the national parliaments. In return for its high degree of independence and discretion, the ECB is accountable to the European Parliament (and to a lesser extent to the European Court of Auditors, the European Ombudsman and the Court of Justice of the European Union (CJEU)). Although there is no interinstitutional agreement between the European Parliament and the ECB to regulate the ECB`s accountability framework, it was inspired by a 1998 European Parliament resolution[108], which was then informally agreed with the ECB and included in Parliament`s Rules of Procedure. [109] This Agreement shall enter into force on the date of entry into force of Regulation (EU) No 1024/2013 or on the day following the signature of this Agreement, whichever is later. For Jean-Claude Trichet, this minister could also rely on the Eurogroup working group on the preparation and follow-up of meetings in the format of the euro zone and on the Economic and Financial Committee for meetings affecting all Member States.

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