European Central Bank annual report (2011):
- extracts from the debate
EPRef92889 // European Parliament , Strasbourg, EP Plenary session - Hemicycle
Lieu: European Parliament, Brussels
End production: 16/04/2013 First transmission: 16/04/2013
Mario DRAGHI presented to the European Parliament the ECB Annual Report 2011 and spoke about the past and future activities of the ECB. After his speech, MEPs debated on the ECB Annual Report draft resolution defending that loans to banks must be conditional to ensure that they lend the funds on to the real economy and that the ECB itself must be made more transparent and accountable. The draft resolution looks at the ever more omnipresent role that the ECB has acquired because of the Eurozone crisis, and suggests that it should have a duty to foster growth and job creation, as their stagnation is a key cause of unsustainable public accounts. It also calls on the ECB to be made much more accountable to democratically-elected institutions, especially when acting within the troika
Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
||Exterior view of the European Parliament, Strasbourg
||Cutaways (2 shots)
||SOUNDBITE (Hungarian) Ildikó GÁLL-PELCZ (EPP, HU), "I think that the ECB acted in the right way and time will tell in the long run. We can decide whether to increase or decrease interest rates and can't tell yet whether that was a good idea or which would have been a better idea but I think that the response to the crisis was a little late in coming."
||SOUNDBITE (French) Liem HOANG NGOC (S&D, FR),"Democracy is crucial because the ECB is making huge profits on the added value of the debt that it is now holding to a considerable degree and the question in the light of the citizens is what is the ECB doing with this profit. Is it going back to the National Central banks and if so what are they doing with it and secondly the hundred billion of liquidity that has been injected has that simply fund the flame of speculation or is it gone to the real economy? And this is the question that the report asks about conditionality for any future injection of liquidity of the kind that we've seen."
||SOUNDBITE (English) Ramon TREMOSA I BALCELLS (ALDE, SP)," The Liberal gourp asks the ECB to create a programme that purchases securitised loans to SMEs , this could restore the broken monetary policy transmission mechanism. What do you think Mr President and a final question. A year ago this Parliament approved with a large majority the European redemption fund in the 2 pack, a partial and temporary mutualisation of public debt conditional to fiscal discipline but the Council used its veto. Some sort of Eurobond should give the message to the financial markets that the Euro is irreversible and may be the OMT programme would not be needed . What do you think?
||SOUNDBITE (Dutch) Bas EICKHOUT (Greens/EFA, NL)," I want to ask you whether you want to operate politically and if you should, you should go to another institution or are you going to stick to your own monetary tasks and if you do that you should not be making political choices when you address the different countries. If you do want to address a given country , you should look at the massive surplus in Germany, you never talked about that, that makes life very difficult for the EMU. I want to hear about all these issues. Finally it is very important for us. We need to have a supervisory role of the ECB in that Parliament. We hope that the ECB will be in favour of that . You will give the EP a clear democratic control over the ECB as a supervisory body."
||SOUNBITE (English) Godfrey BLOOM (EFD, UK), "Can i make a plea for my friends and their families in Cyprus? a micro brewer who had his savings in a bank to start a micro brewing company, not a rich man at all but of course it was more than 100.000 Euros because it was his life savings...I am not totally convinced that you really care about them. Can you give me an assurance that you will do whatever it takes to get these poor people's money back?"
||SOUNDBITE (English) Mario DRAGHI, ECB President,"
There can't be growth or equity that is sustainable through time through debt creation. So fiscal consolidation remains unavoidable but it can be very effectively mitigated and a first way out of this is to increase competitiveness. Increase competitiveness' is the only way out to mitigate this fiscal consolidation."
||SOUNDBITE (English) Mario DRAGHI, ECB President," The more a banking sector is over sized with respect to the economy where its bank reside, the more conservatively that banks have to be supervised so high levels of capital, higher buffers and the more conservative should be the government budget of that country being run."
||SOUNDBITE (English) Mario DRAGHI, ECB President, "I stand behind the highest standards of accountability The ECB is strongly committed to ensure and preserving a high degree of transparency