Differences generate the impression that governing council members act in national interests rather than European ones, comments Bini Smaghi in this FT article.
The departure from collegiate accountability and the expression of dissenting views on important policy issues has not strengthened the independence of the ECB. It might have actually seriously undermined it.
The expression of a dissenting opinion, especially when the opinion coincides with the view of a large part of the population of the respective country, generates the impression that discussions within the Governing Council are politicised, and that all members reflect national views. This may encourage pressures by national constituencies on the different ECB Council members to act on the basis of national interests, rather than the broader European ones. It may also encourage some national central banks to publicly express views on monetary policy issues, which is against the letter and the spirit of the Treaty because monetary policy is not anymore a competence of the NCBs but only of the ECB. The Treaty clearly states that the ECB Council members should not be influenced by any national or European institution, not even their own central bank.
The breach of collegiate accountability has led to requests for modifying the statutes of the ECB with a view to better reflect nationalities. An example is the recent call by some German politician and academics to change the current one-man-one-vote ECB voting system to one based on national weights. This would certainly end the independence of the ECB.
Finally, in the current environment characterised by high uncertainty, not only in financial markets but also in the population at large, uncoordinated communication adds to instability. It ultimately undermines the credibility of the central bank and reduces the effectiveness of its policies. Central banks are expected to send clear messages, explaining the reasons for their actions, possibly also the risks, including the risks of non-action.
Preserving the independence of the ECB requires that personal considerations, even when well-founded, remain subordinated to the pursuit of the common good. If this cannot be achieved, there is only one way out.
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