This annual report assesses the European Central Bank (ECB) actions in 2011 in the context of the economic and social crisis, in which it plays a crucial role. The report specifically analyses the ECB’s action on monetary policy; the exceptional measures taken in response to the financial crisis; the central role of ECB within the banking union; and the institutional issues related to the Bank in the context of the current discussion on the future of European Monetary Union (EMU).
Our Group supports the measures taken by the ECB to lower the cost of borrowing for member states and to stabilise the financial market. However, we are concerned about the lack of impact these policies have had on the real economy and the ability of the banking system to lend to small and medium enterprises and households. Monetary policy should be complemented by additional fiscal instruments – including a fiscal capacity – at EMU level to create an adequate policy mix for growth and jobs. The increasing role of European Central Bank within the Troika and the banking union calls for new governance rules to increase both the transparency and accountability of the European Monetary Union.