INTRODUCTION DE LA BANQUE CENTRALE EUROPÉENNE (BCE)
Formation
Established by the Treaty on European Union in 1992, the European Central Bank (ECB) was launched on June 1, 1998, in Frankfurt, Germany, and succeeded the European Monetary Institute, which was created in 1994, on January 1, 1999 Since November 1, 2011, the ECB has been led by Italian President Mario Draghi.
Elle gère la politique monétaire de la zone euro et son objectif principal est de maintenir la stabilité des prix, préservant ainsi la valeur de la monnaie unique.
With the Lisbon Treaty, the European Central Bank (ECB) is established as an institution of the European Union, alongside the Commission, Parliament, Council of the Union, European Council, and Court of Justice of the European Union Its operations, organization, and responsibilities are outlined in Articles 282 and subsequent articles of the Treaty on the Functioning of the European Union (TFEU) Additionally, monetary policy is addressed in Articles 122 and following within the same treaty.
Objectifs
The primary goal of the Eurosystem is to maintain price stability While prioritizing this objective, the Eurosystem also supports broader economic policies to help achieve the Union's goals It operates in accordance with the principles of an open market economy where competition is free.
Missions
Définir et mettre en œuvre la politique monétaire unique
The single monetary policy is established by the ECB's Governing Council and implemented in a decentralized and harmonized manner by the NCBs This operational framework adheres to key principles, including compliance with market economy standards, equal treatment, simplicity, an optimal cost-effectiveness ratio, decentralization, continuity, harmonization, and alignment with the decision-making process of the Eurosystem.
Conduire les opérations de change et détenir et gérer les réserves officielles de change des États membres
L’Eurosystème détient et gère les réserves officielles (devises, or) des États membres participant à l’Union monétaire Les BCN transfèrent à la BCE une partie de ces réserves.
Eurozone countries operate under a floating exchange rate regime, allowing for discussions between the Council of the European Union (Finance Ministers) and the European Central Bank (ECB) regarding the euro's exchange rate against other currencies In exceptional circumstances, such as significant misalignments, the Council of the EU may provide general exchange rate policy guidance while ensuring the independence of the Eurosystem and maintaining price stability objectives.
Promouvoir le bon fonctionnement des systèmes de paiement et de règlement
L’Eurosystème gère le système Target (Trans-european
Automated Real-time Gross settlement Express Transfer, pour
The Trans-European Automated Real-Time Gross Settlement Express Transfer System (TARGET) facilitates central bank operations and high-value interbank transfers in euros, processing payment orders in real-time Launched in January 1999, TARGET has significantly enhanced the integration of the euro money market and increased the security of high-value payments To better meet long-term user needs, the Eurosystem introduced a new generation of the system, TARGET2, which was developed and managed by the Banque de France, Banca d’Italia, and Deutsche Bundesbank, and became operational in phases from November 2007 to May 2008.
The Target 2 Securities (T2S) system, initiated by the Governing Council on July 17, 2008, and launched on June 22, 2015, serves as a technical platform where Central Securities Depositaries (CSDs) manage their securities settlement activities This system facilitates the delivery of securities in central bank money while ensuring harmonized procedures across the European financial landscape.
S’agissant des systèmes de paiement de détail, l’Eurosystème est étroitement associé à l’initiative des banques européennes de création de l’Espace unique des paiements en euros (Single Euro
Payments Area – Sepa), qui se traduit, depuis janvier 2008, par l’introduction progressive de nouveaux moyens de paiement et la constitution d’un ensemble européen unifié des paiements de détail.
The ECB's Governing Council establishes the objectives and principles for a unified Eurosystem policy regarding payment system oversight, which is jointly implemented by the ECB and national central banks (NCBs) This oversight is conducted based on shared standards of security and efficiency.
To ensure effective risk management and robust governance frameworks, the European Central Bank (ECB) has implemented a regulation outlining the supervisory requirements for systemically important payment systems, which came into effect on [insert date].
Émission des billets et des pièces
The Governing Council is the sole authority responsible for approving the issuance of euro banknotes, which are the only legal tender in the member countries of the monetary union Euro coins are issued by member states, contingent upon the approval of the issuance volume by the Governing Council.
The definition of monetary policy requires a diverse and high-quality set of statistics To fulfill the tasks of the European System of Central Banks (ESCB), the European Central Bank (ECB), with the support of the National Central Banks (NCBs), collects and publishes financial and monetary statistical information from relevant authorities and directly from economic agents.
The European Central Bank (ECB) is consulted by the EU Council and member state authorities, providing its opinion on regulatory projects within its area of expertise This includes matters related to monetary policy, payment methods, national central banks, statistical data, payment and settlement systems, banking supervision, and the stability of financial institutions and markets.
La BCE peut également, de sa propre initiative, soumettre des avis aux institutions européennes et aux autorités nationales dans les domaines relevant de sa compétence.
Le Conseil des gouverneurs adopte les avis susmentionnés
The ECB, along with the national central banks of the Eurosystem and the ESCB, monitors developments in the banking sector and trends in other financial sectors to identify vulnerabilities and assess the resilience of the financial system.
Les politiques macroprudentielles ont pour objet d’appréhender les risques systộmiques susceptibles d’apparaợtre au sein du système financier L’objectif principal est de préserver la stabilité financière.
Prévoir un lien avec la partie du site consacrée à la surveillance des infrastructures de marché et des systèmes de paiements
- Prévenir l’accumulation excessive de risques, liée à des facteurs externes et des défaillances du marché, afin de lisser le cycle financier (dimension temporelle),
- Renforcer la capacité de résistance du secteur financier et limiter les effets de contagion (dimension transversale),
- Favoriser une perspective à l’échelle du système dans le cadre de la réglementation financière en vue d’instaurer un ensemble approprié d’incitations pour les intervenants de marché
Furthermore, the national central banks (NCBs) are represented within the European Systemic Risk Board (ESRB), which is supported by the European Central Bank (ECB) that provides analytical, statistical, administrative, and logistical assistance.
The stability of the financial system relies heavily on the safety and strength of major credit institutions Consequently, the European Central Bank's role in banking supervision has been strengthened, following a decision made by heads of state and government during the European Council in June 2012.
Le mécanisme de surveillance unique (MSU) est ainsi le nouveau système de supervision bancaire européen, composé de la BCE et des autorités nationales de supervision des pays participants.
- Assurer la sauvegarde et la solidité du système bancaire européen ;
- Renforcer l’intégration et la stabilité financières
- Garantir la cohérence de la supervision bancaire
The European Central Bank (ECB) officially assumed its supervisory responsibilities on November 4, 2014 In collaboration with national supervisory authorities, it oversees the functioning of the Single Supervisory Mechanism (SSM) In France, the Prudential Control and Resolution Authority (ACPR) is responsible for the supervision of banking and insurance sectors.
The primary credit institutions in the Eurozone are directly supervised by the European Central Bank (ECB) Additionally, the granting and withdrawal of banking licenses now fall under the ECB's jurisdiction Meanwhile, less significant banks continue to be overseen by national prudential supervisory authorities, which work in close collaboration with the ECB.
Les organes dirigeants de la BCE
Les organes dirigeants de l’Eurosystème, de la BCE et du SEBC sont le Conseil des gouverneurs, le Directoire et le Conseil général.
The Executive Board of the ECB consists of the president, the vice-president, and four additional members It implements monetary policy in line with the guidelines and decisions set by the Governing Council Within this framework, the Executive Board provides necessary instructions to national central banks Additionally, the Board may receive delegated powers as determined by the Governing Council.
The president leads the Board of Governors and the Executive Board of the ECB, as well as the General Council, holding a decisive vote in case of a tie Additionally, the president represents the ECB externally or can appoint a representative for this purpose The president also legally commits the ECB in dealings with third parties.
In the absence of the president, the vice-president leads the Governing Council, the Executive Board of the ECB, and the General Council Members of the Executive Board must be nationals of the euro area member states and possess recognized authority and professional experience in monetary or banking matters.
Le Conseil des Gouverneur Composition
The Governing Council is the supreme decision-making body of the Eurosystem, convening every two weeks with members from the ECB's Executive Board and the governors of the national central banks (NCBs) of eurozone countries Currently, the Council comprises 25 members, including 6 from the ECB's Executive Board and 19 governors representing the 19 euro area countries.
The Governing Council establishes the guidelines and makes essential decisions to fulfill the missions assigned to the Eurosystem by the Treaty on the Functioning of the European Union (TFEU) and its statutes Primarily, it defines the monetary policy for the euro and determines the necessary directions for its implementation Consequently, the Governing Council sets the key interest rates within the monetary union.
The Governing Council adopts the internal regulations governing the organization of the ECB and its decision-making bodies, fulfills the advisory functions of the ECB, and determines the representation of the Eurosystem in international cooperation matters.
Pour toutes les décisions relatives à la définition et à la conduite de la politique monétaire unique, le Conseil des gouverneurs a longtemps fonctionnộ selon le principe ô un membre, une voix ằ.
To ensure the effective decision-making capability of the Council of Governors, the Council of the European Union established a voting rights rotation system in 2003 This system has been in effect since January 1, 2015, following Lithuania's entry as the 19th member of the eurozone The voting rights rotation involves categorizing member countries into groups based on their economic size and the scale of their financial sector.
The governors of the top five countries—Germany, France, Italy, Spain, and the Netherlands—share four voting rights, while the remaining fourteen countries, following Lithuania's accession on January 1, 2015, hold eleven voting rights In each group, the governors exercise their voting rights in a monthly rotation Additionally, the members of the ECB's Executive Board have a permanent voting right.
For decisions regarding asset management, such as the increase of the ECB's capital, governors hold a permanent voting right Votes are weighted according to the percentage of ECB capital held by each national central bank (NCB).
However, since the Board of Governors makes most of its decisions by consensus and in a spirit of cooperation, all central bank governors attend the Board meetings and engage in the discussions.
The General Council convenes four times a year, bringing together the President and Vice-President of the ECB alongside the governors of all national central banks in the EU, regardless of their membership in the eurozone, totaling 28 central banks as of January 1, 2016.
The General Council supports the advisory functions of the ECB and continues the missions previously handled by the European Monetary Institute (EMI), which prepared for the establishment of the Eurosystem and the euro from 1994 to 1998 These ongoing missions are necessary due to the existence of EU member countries that do not participate in the monetary union.
- Renforcement de la coopération entre les BCN et coordination des politiques monétaires au sein de l’UE en vue d’assurer la stabilité des prix ;
- Supervision du fonctionnement du nouveau mécanisme de change européen (MCE2) qui lie à l’euro les monnaies certains des pays de l’UE ne participant pas à la zone euro.
In accordance with the SEBC statutes, external auditors review the annual accounts of the ECB, while the European Court of Auditors assesses the efficiency of the ECB's management Their reports are made publicly available.
Internally, the control framework includes the Internal Audit department, a professional ethics advisor, and since 2007, an Audit Committee that reports directly to the Board of Governors.
FONCTIONNEMENT ET MODALITÉS D’ORGANISATION
Les principes de fonctionnement
The independence of central banks is a fundamental principle established by the Treaty on the Functioning of the European Union (TFEU) regarding the operation of the Eurosystem and the European System of Central Banks (ESCB) Adhering to this principle is a legal convergence criterion for states upon their entry into the EU and in preparation for adopting the euro, which is subject to evaluation Once these countries adopt the euro, maintaining this independence is essential for the effective functioning of the monetary union.
The independence of central banks is crucial for the credibility of the euro, as it plays a vital role in achieving the objective set for the European System of Central Banks (ESCB) by the Treaty: price stability.
Pour assurer le respect de l’indépendance des banques centrales, les statuts du SEBC et de la BCE contiennent certaines dispositions techniques :
- durée de mandat suffisamment longue pour les membres des organes dirigeants (huit ans non renouvelables pour les membres du Directoire, par exemple)
- droit de recours des gouverneurs auprès de la Cour de Justice de l’Union européenne (CJUE) en cas de révocation non justifiée au regard des statuts
- pour les membres du Directoire, mandat révocable seulement en cas d’incapacité ou de faute grave prononcée par la CJCE à la requête du Conseil des gouverneurs ou du Directoire
The responsibility of the European Central Bank (ECB) is closely linked to its independence, as outlined in the Treaty on the Functioning of the European Union (TFEU) The ECB is accountable to the European Parliament, which represents EU citizens, and must also provide regular reports to the Council of the EU, representing the governments of member states This accountability is further emphasized in the statutes of the European System of Central Banks (ESCB) Additionally, interinstitutional dialogue plays a crucial role in maintaining this balance of responsibility and independence.
Regular relationships, extending beyond the provisions of the Treaty on the Functioning of the European Union (TFEU), are established with all EU institutions The members of the ECB's Executive Board are appointed by the heads of state or government of the member states in the monetary union, based on a recommendation from the Council of the EU, requiring a qualified majority.
The dialogue conditions between the Eurosystem and the Council of the EU are primarily outlined in the Treaty on the Functioning of the European Union (TFEU) The President of the Council of the EU can attend meetings of the ECB's Governing Council without voting rights Conversely, the President of the ECB may be invited to Council meetings when issues related to the Eurosystem are discussed.
The President of the EU Council can present a motion for deliberation by the Board of Governors Additionally, the European Central Bank's annual report is submitted to the EU Council, as well as to the European Council, which gathers the heads of state or government.
Two representatives from the European Central Bank (ECB) and representatives from national central banks (NCBs) participate in the Economic and Financial Committee, which brings together officials from the ministries of Economy and Finance and central banks of EU countries to prepare for Ecofin meetings.
Relations avec la Commission européenne
A member of the Commission may attend the meetings of the ECB's Governing Council without voting rights The ECB's annual report is submitted to the Commission.
Relations avec le Parlement européen et les parlements nationaux
Le Parlement européen donne un avis sur les candidats, proposés par le Conseil de l’UE, au poste de membre du Directoire de la BCE.
Cet avis, qui est publié, est précédé d’une audition des candidats par la Commission compétente du Parlement européen.
The Treaty on the Functioning of the European Union (TFEU) mandates the European Central Bank (ECB) to present an annual report on its activities and monetary policy to the Parliament, covering both the previous and current years This report allows the Parliament to engage in a general debate Additionally, the ECB publishes monthly bulletins, despite the TFEU only requiring quarterly updates in this area.
The Treaty allows for hearings of the ECB President or other Executive Board members at the request of Parliament or on their own initiative A voluntary practice has developed, fostering a monetary dialogue between the ECB and the European Parliament This quarterly exchange provides an opportunity for the ECB President to share insights with the Parliament's Economic and Monetary Affairs Committee Through this frequent and in-depth dialogue, the ECB communicates its assessment of the economic situation and price level trends, explaining the Eurosystem's policies aimed at achieving the objectives set forth by the Treaty.
Enfin, les lois nationales prévoient généralement que les dirigeants des BCN soient entendus par les parlementaires nationaux C’est le cas, notamment, de la loi sur la Banque de France.
Relations avec la Cour de justice de l’Union européenne (CJUE)
The Court of Justice is responsible for overseeing the actions or omissions of the European Central Bank (ECB) It can be approached for the interpretation of these actions or for appeals and requests regarding the dismissal of members of the Governing Council.
Relations avec le Système européen de supervision financière (SESF)
Established on January 1, 2011, the European System of Financial Supervision (ESFS) was created to address the G20's recommendations, following the report by Jacques de Larosière, who served as Governor of the Bank of France from 1987 to 1993.
Les modalités d’organisation
a, La répartition des rôles entre la BCE et les BCN
Within the Eurosystem, the responsibility for defining the unique monetary policy lies solely with the Governing Council of the ECB Its decisions are binding across the entire Eurosystem, and monetary policy operations are carried out uniformly in all member states participating in the monetary union There is no national or regional monetary policy within the monetary union.
The Treaty on the Functioning of the European Union (TFEU) mandates that the European Central Bank (ECB) utilize National Central Banks (NCBs) whenever feasible to carry out operations related to the Eurosystem's tasks As a result, a decentralization principle has been established for the organization of the Eurosystem.
The services of the National Central Banks (NCBs), in collaboration with the European Central Bank (ECB) and under the guidance of the Executive Board, play a crucial role in shaping monetary policy decisions They actively participate in committees established within the framework of the European System of Central Banks (ESCB) It is important to note that the governors of the NCBs serve on the ECB's Governing Council in a personal capacity, without representing specific national interests, and make collective decisions based on the overall economic situation in the Eurozone.
In the context of decentralization, National Central Banks (NCBs) implement monetary policy decisions made by the Governing Council Acting as natural intermediaries for credit institutions in their respective countries, NCBs conduct refinancing operations based on instructions from the Governing Council and the Executive Board They maintain relationships with counterparts in capital markets and serve as the access point to central bank money in euros for national credit institutions, which hold their accounts with the NCBs Additionally, NCBs manage foreign exchange reserves, conduct currency interventions, oversee payment systems, and issue fiat currency, including euro coins and banknotes.
The central banks play a crucial role in explaining monetary policy decisions As key interlocutors for national economic stakeholders, they focus on illustrating the impacts of the unified monetary policy on the national economy.
National central banks (NCBs) can engage in additional activities beyond their responsibilities within the Eurosystem, provided these do not conflict with the Eurosystem's objectives and missions For instance, the Bank of France undertakes various public interest missions assigned to it by the Government, Parliament, or the French financial sector.
The national central banks (NCBs) of EU member states outside the Eurosystem hold a unique status within the European System of Central Banks (ESCB), as they maintain their own national monetary policy Additionally, various committees play a crucial role in the functioning and coordination of these banks.
The committees of the Eurosystem and the ESCB support the governing bodies of the ECB in fulfilling their responsibilities Established shortly after the ECB's creation, these committees consist of members from the national central banks (NCBs) and the ECB Consequently, the NCBs play a direct role in preparing decisions for the Eurosystem.
Committees, some chaired by BCN officials, convene in either Eurosystem or extended SEBC formats, depending on whether the topics under review are discussed by the Governing Council or the General Council.
Suite à la mise en place du mécanisme de supervision unique (MSU), la plupart des comités se réunissent en formation standard ou en formation MSU.
Each of these committees includes a varying number of sub-structures, such as working groups and ad hoc groups Together, they play a crucial role in fostering a shared identity and a common corporate culture within the Eurosystem team, formally established by the publication of a mission statement in January 2005.
MOYENS FINANCIERS ET JURIDIQUES
Moyens financiers
The capital of the European Central Bank (ECB) is sourced from the national central banks (NCBs) of all EU member states, which are the only entities permitted to subscribe to and hold ECB capital As of January 1, 2015, this capital amounts to €10,825 million.
The shares of National Central Banks (NCBs) in the capital of the European Central Bank (ECB) are determined using a formula that reflects each country's proportion of the total population and gross domestic product (GDP) within the European Union.
The European Central Bank (ECB) adjusts its capital distribution key every five years and whenever a new country joins the European Union Since the start of the third phase of Economic and Monetary Union on January 1, 1999, the ECB's capital allocation has been modified six times Notable revisions occurred on January 1 in 2004, 2009, and 2014, alongside additional adjustments on May 1, 2004, when several countries, including the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia, and Slovakia, joined the EU Further changes took place on January 1, 2007, with the accession of Bulgaria and Romania, and on July 1, 2013, when Croatia became an EU member.
BCN de la zone euro
Les souscriptions au capital de la BCE, qui doivent être entièrement libérées par les BCN de la zone euro, s’élèvent au total à 7 619 884 851,40€.
Les bénéfices et pertes nets de la BCE sont répartis entre les BCN de la zone euro.
The nine EU central banks not part of the eurozone are required to contribute to the operational costs of the European Central Bank (ECB) if decided by the General Council, due to their involvement in the European System of Central Banks Since 2010, their contribution has been set at 3.75% of their total subscribed capital, amounting to €120,192,083.17 paid to the ECB by these non-eurozone central banks.
Non-eurozone central banks do not have the right to receive a share of the distributable profits from the European Central Bank (ECB) and are also not obligated to cover any losses incurred by the ECB.
Moyens juridiques
Pour accomplir les missions qui sont confiées à l’Eurosystème et au SEBC, la BCE :
Regulations issued by the European Central Bank (ECB) have a general scope and binding force, ensuring direct applicability across all member states For instance, they govern the calculation methods for mandatory reserves and establish their amounts.
The European Central Bank (ECB) makes mandatory decisions that can either be directed at specific recipients or applied more generally without a designated recipient An example of the latter occurred in March 2003 when the ECB established the conditions for exchanging and withdrawing euro banknotes.
The article discusses the issuance of non-binding recommendations and opinions that serve as preparatory actions for regulations by the EU Council of Ministers related to the European System of Central Banks (ESCB), the Eurosystem, and the European Central Bank (ECB) These recommendations may pertain to mandatory reserves and the maximum allowable ratios between these reserves and their underlying base.
The European Council may impose fines of up to €500,000 and daily penalties of up to €10,000 for non-compliance with its regulations and decisions This includes cases where economic agents fail to meet statistical reporting obligations to the European Central Bank or when credit institutions do not adhere to mandatory reserve requirements.
The European Central Bank (ECB) issues specific acts for the Eurosystem, providing both instructions and guidelines to the national central banks (NCBs) within the system Similar to European directives, the ECB's guidelines outline the desired outcomes for NCBs, allowing flexibility in the methods employed to achieve these goals For instance, the ECB's orientation on monetary policy instruments and procedures has been implemented in France through a decision by the Monetary Committee of the General Council of the Bank of France.
REMARQUES ET PROPOSITIONS
Remarques
The 1992 Treaty on European Union (TEU) initiated the Economic and Monetary Union, where member states agreed to create a single monetary zone, coordinate their economic policies, and adhere to specific budgetary constraints, including limiting public deficits to 3% and public debt to 60% of GDP This framework aimed to enhance trade and price stability, with the primary objective of the European System of Central Banks (ESCB) being the maintenance of price stability.
Given the established connection between independence and monetary stability, exemplified by the Bundesbank, the European Union has established a highly independent central bank characterized by limited transparency and political accountability.
Eighteen member states currently make up the eurozone, which experienced stable growth and low inflation during its first decade This stability was driven by a dual economic model: export-led growth in central countries like Germany, Finland, and Austria, and debt-fueled growth in peripheral nations such as Ireland, Italy, Greece, Spain, Portugal, and Cyprus The European Central Bank's policy of low interest rates supported this economic framework.
The global deregulation of financial markets, coupled with the failure of the non-bailout clause, has fostered the illusion of a single currency Banks have engaged in significant risk-taking, plunging into the realm of global speculation.
Financial institutions have grown too big to fail and play a critical role in the economy A significant issue arises in the Eurozone, where, unlike in the United States, the central bank has struggled to rescue and recapitalize these institutions without causing severe repercussions for the broader economy.
The European Central Bank (ECB) lacks the ability to function as a lender of last resort, presenting a significant contradiction since central banks are primarily established to fulfill this role They are meant to rescue systemically important banks to prevent credit tightening or contagion, ultimately aiming to ensure financial stability.
La crise mondiale de 2007 a rendu cette contradiction tangible.
The European Council was tasked with developing strategies and policies to assist countries forced to bail out their own financial systems or affected by public debt market instability Greece, Ireland, Portugal, and Cyprus sought a comprehensive rescue plan from the EU, committing to implement macroeconomic adjustment programs in return Spain received indirect support through a €100 billion loan to recapitalize its banks, while Italian banks and others frequently requested access to the ECB's low-interest loans.
To address financial stability, the EU established the European Financial Stabilisation Mechanism, the European Stability Fund, and the European Stability Mechanism, which is an intergovernmental treaty providing financial assistance Concurrently, member states initiated the budgetary pact to incorporate a fiscal discipline rule into their constitutions, indicating that solidarity was to be achieved at the expense of conditionality in macroeconomic policies.
The EU has established a complex cooperation mechanism, known as the troika, involving the European Commission, the European Central Bank, and the International Monetary Fund, to address challenges in specific countries Amidst ongoing turmoil, the EU has strengthened the Stability and Growth Pact by integrating the "six-pack" and "two-pack" measures, aimed at enhancing fiscal consolidation and activating alert mechanisms to identify necessary macroeconomic imbalances.
Furthermore, the promise of a banking union, along with the Commission's Blue Print and the communication from the four presidents, suggested that structural measures would be implemented to address legal gaps within the eurozone This would enable the ECB to function effectively as a central bank, fully utilizing its instruments and capabilities.
The European Central Bank (ECB) has played a crucial role in shaping and implementing macroeconomic adjustment programs, particularly through the troika and country-specific recommendations However, these policies have proven ineffective for financial markets, prompting ECB President Mario Draghi to assert that the "ECB is ready to do whatever it takes to preserve the euro." This led to the controversial Outright Monetary Transactions (OMT) program, which involves purchasing bonds on the secondary market of weaker member states The ECB has committed to acting as a lender of last resort in extreme situations Currently, the European Court of Justice is reviewing the OMT, often referred to as the ECB's "bazooka," amid concerns from the German Constitutional Court regarding its legality and potential overreach of the central bank's authority.
Propositions
The European Central Bank's (ECB) policy recommendations highlight its role as a controller of macroeconomic conditionality for countries under the bailout plan Although this conditionality is initially agreed upon within the Eurogroup, the ECB appears to exert pressure and interpret these conditions in a specific manner post-factum By accepting these recommendations, national governments inadvertently enhance the ECB's power This raises questions about whether such actions exceed the ECB's original mandate and how they may impact its legitimacy.
In accordance with the treaties, the European Central Bank (ECB) supports the overall economic policies within the EU while prioritizing price stability This entails collaboration with member states to achieve sustainable development in Europe, characterized by balanced economic growth, price stability, and a highly competitive social market economy aimed at full employment and social progress.
Cependant, la BCE a formulé des recommandations politiques visant avant tout à calmer les marchés financiers et à ne pas nécessairement respecter l'intérêt économique général de l'UE.
Spain received a letter from the ECB requesting amendments to its constitution, with financial market reports suggesting measures beyond its scope, including VAT increases, pension reforms, and labor market changes Italy was sent a confidential letter signed by Mario Draghi and Jean-Claude Trichet, which called for the complete liberalization of local public services Additionally, the Troika advised Greece and Portugal to privatize their water services.
Member states have made the European Central Bank's (ECB) recommendations mandatory due to the central bank's significant influence, often using it as a shield for implementing unpopular measures without political accountability While peripheral countries argue that macroeconomic adjustment is unavoidable, central countries prefer to rely on the ECB Even Germany seems to favor flexible monetary policies from the ECB that indirectly recapitalize certain banks over formal bailout processes This political vacuum within the EU may explain the ECB's active role during the euro crisis.
The European Central Bank (ECB) advocates for budgetary consolidation, privatization, and austerity measures in Southern Europe, a stance accepted by both conservative and social-democratic national governments This raises two critical questions: why does the ECB assume the role of overseer for macroeconomic conditionality, and why do national governments comply with these recommendations?
The European Central Bank (ECB) is fulfilling its essential role in safeguarding the euro through structural reforms and fiscal recommendations These measures, which also address labor market issues and other areas, are aimed solely at ensuring the stability of the euro and the effectiveness of monetary policy transfer mechanisms Importantly, the ECB emphasizes that these are merely recommendations.
The Eurogroup and the Council may lack authority, leading them to delegate macroeconomic conditionality control to the ECB The political vacuum in the EU, combined with the ECB's ability to print money, grants the bank the credibility to influence financial markets Both national governments and markets perceive the ECB as more credible than the Council and the Eurogroup, making it more effective for the ECB to take on this role.
The Council may not have reached an agreement on how to define decision-making authority, strategically holding the ECB accountable to citizens to maximize political impact Both the Council and the Eurogroup recognize that real power remains in their hands Despite recommendations, central countries are reluctant to relinquish sovereignty to the ECB for the banking union.
In response to the second question, national governments, by endorsing the European Central Bank's (ECB) recommendations, institutionalize the notion that there are no alternatives This approach effectively eliminates any potential political dissent and minimizes electoral costs for the unpopular party during elections, especially considering that the ECB is not a directly elected institution.
Alternatively, we can envision a negotiation process involving the Eurogroup, the ECB, and the country in need of rescue, where policies may range from total austerity to complete stimulus Considering the ECB as a more conservative agent, influenced by Germany's stronger presence, it is likely that the balance will shift towards austerity when the ECB intervenes Consequently, the Eurogroup is inclined to empower the ECB, leading to more pro-austerity adjustment programs while evading accountability.
The reality is a blend of various responses: Southern governments are willing to accept macroeconomic conditionality to gain solidarity and evade political responsibility Merkel is open to a European Central Bank (ECB) that exceeds its mandate if it stabilizes the eurozone and prevents major debates in Germany While the ECB is inclined to stabilize the euro, it also harbors a hidden neoliberal agenda, shared with the IMF and the Commission, which it is willing to pursue as long as financial markets remain calm.
Understanding the strategic dynamics within the EU is crucial for institutionalizing macroeconomic adjustment programs and austerity measures The European Central Bank (ECB) plays a significant role, but it is essential to recognize the influence of other entities such as the Council, the Eurogroup, the European Commission, the European Parliament, and key national governments like Germany Ultimately, the question remains unclear regarding who truly holds the power in these decisions.