Dáil Éireann debate -
Thursday, 17 Dec 1998

Vol. 498 No. 6

Written Answers - European Central Bank.

Willie Penrose

Question:

36 Mr. Penrose asked the Minister for Finance his views on whether it is appropriate for him or other Ministers for Finance to comment on the monetary policy of the ECB or the member banks of the ECSB; and if he will make a statement on the matter. [28036/98]

Minister for Finance (Mr. McCreevy)

The independence of the European Central Bank and of the national central banks in the exercise of the tasks of the European system of central banks — composed of the ECB and national central banks — is explicitly guaranteed by the Treaty establishing the European Union. Article 107 of the Treaty provides that when exercising the powers and carrying out the tasks and duties conferred upon them by the Treaty and the Statute of the ESCB, neither the ECB, nor a national central bank, nor any member of their decision-making bodies shall seek or take instructions from Community institutions or bodies, from any government of a member state or from any other body. The Article also provides that Community institutions and bodies and the governments of the member states undertake to respect this principle and not to seek to influence the members of the decision-making bodies of the ECB or of the national central banks in the performance of their tasks.

It is important to distinguish between the independence of the ECB and the need for accountability. The Treaty provides for an appropriate degree of accountability as a counterbalance to independence of the ECB and the national central banks. Under the Treaty, the ECB must draw up and publish reports on the activities of the European system of central banks at least quarterly. The ECB must submit an annual report on the activities of the ESCB and on the monetary policy of both the previous and current year to the European Parliament, the Council and the Commission and also to the European Council. The President of the ECB must present this report to the Council and to the European Parliament, which may hold a general debate on the report. The President of the ECB and the other members of the executive board may, at the request of the European Parliament or on their own initiative, appear before the competent committees of the European Parliament.

The Treaty also provides for a framework for continuous dialogue between the Council of Ministers and the ECB, respecting their respective competences. The President of the Council of Ministers may participate, without having the right to vote, in meetings of the ECB Governing Council and may submit motions for deliberation. The President of the ECB shall be invited to participate in Council meetings when the Council is discussing matters relating to the objectives and tasks of the ESCB.

In addition to these Treaty requirements, the ECB will be invited to take part, when appropriate, at the informal meetings of the euro 11 group — comprising the Ministers of the states participating in the euro area.

Furthermore, the President of the ECB has indicated that he will hold a press conference, normally once a month, after one of the fortnightly meetings of the Governing Council of the ECB. Also, I understand that the ECB intends to keep the public informed about its activities through speeches and regular publications.