Derek McDowell
Question:140 Mr. McDowell asked the Minister for Finance his views on the resolution of the European Parliament in relation to the democratic accountability of the ECB. [24084/98]
Written Answers. - European Central Bank.
I assume that the Deputy is referring to the resolution on democratic accountability in the third phase of EMU which was adopted by the European Parliament on 2 April 1998. I understand that, in accordance with the final paragraph of the resolution, the text of the resolution was subsequently forwarded to the Commission, the Council and the European Monetary Institute, now the European Central Bank, ECB.
In so far as the resolution is addressed to the ECB, this is a matter for the ECB itself.
In relation to the accountability of the ECB, the Deputy will be aware that the independence of the ECB 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 Community. Such independence is, of course, counterbalanced by an appropriate degree of accountability and this is also provided for in the treaty.
Under the Treaty, the ECB must draw up and publish reports on the activities of the European system of central banks, ESCB, 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 competencies. 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. The ECB has also indicated that the public will also be kept informed about its activities through speeches and regular publications.
As I have previously indicated, I believe that these arrangements represent an appropriate balance between safeguarding the independence of the ECB and ensuring that it is accountable and transparent.