01 December 2011

Parliament asks ECB to keep up its euro-saving work

Opening the debate, Ramon Tremosa i Balcells (ALDE, ES) congratulated the ECB for having stepped up to the plate where others had shied away: "The ECB should continue intervening in the markets.  This is saving the euro. At the same time I deplore the hesitancy of the Commission and the Member States in managing the crisis", he said.

Draghi: A compact to restore credibility

Mr Draghi called for a "new fiscal compact" between Member States which would enshrine the essence of fiscal rules. "Countries are on the right track to reform but a credible message is needed now. This compact will be the most important element to deliver credibility in the short term", he told the plenary. He also said that although he would not discard the idea of a change to the treaties, a new approach was needed to deliver results faster.

New role for the ECB

In the ensuing debate, many MEPs called for a rethink of the ECB's role in the short term to take on officially the duty of lender of last resort. "The ECB is already the lender of last resort and now politicians must legitimise this", Kay Swinburne (ECR, UK) said. Gay Mitchel (EPP, IE) added: "Natural justice must precede written law". George Sabin Cutas (S&D, RO) said: "It is time for the ECB to take on more radical duties".

Overhauling economic governance

The resolution puts forward various proposals for an overhaul of the eurozone's economic governance architecture, all in line with previous calls by Parliament. Most importantly, it lends weight to former ECB President Trichet's call for a European finance minister, who would be democratically accountable to the European Parliament, and for the medium term calls for the setting up of a single European Treasury. 

The resolution also calls on the Commission to set up a European credit rating foundation and look into the usefulness of suspending credit ratings for countries receiving bailout funds. Finally, to reduce the EU's dependence on the IMF, the resolution also calls on the Commission to take the steps needed to establish a European monetary fund.

Press release

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