A prominent adviser to the German government for economic affairs, accused the ECB has gained too much power, especially the increasingly political role assigned to the governments to play.
“The ECB has gained immense power, while not subject to any parliamentary control”, which “deal with a critical eye,” said Isabel Schnabel during an interview to Frankfurter Allgemeine Sonntagszeitung, published on Sunday, May 15.
Asked if the ECB has become too strong, the same answer: “I think yes”. The ECB “has also become more political. But this is due to the fact that often the politicians took action and, consequently, forced the ECB to do it,” continued the Schnabel, for which the ECB “has turned into almost a political institution’, which must be terminated in its view.
Isabel Schnabel is a member of the Council of Economic Experts, which is also known by the nickname “five wise men”. This is an independent group of advisers to the German government.
The Schnabel, however, has defended the policy of quantitative easing implemented by the ECB under Mario Draghi. “Low rates are above all a consequence of the economic crisis”, rated. “And the ECB is not the only one that affects interest rates,” he added, indicating macro-economic trends, such as, for example, the ageing of the population.
The Schnabel expressed a different view from that of many German politicians, for whom the historically low ECB interest rates punish the Germans savers and reduce the profit margins of the banks. “What worries me is that the purpose of such criticism is to politicised the ECB even more. The calls to give Germany a stronger vote (p.p. the Board of directors) and more direct influence on the ECB are moving in the wrong direction”, stressed Isabel Schnabel. “We need an independent central bank” that acts within the mandate, insisted the same.
War for power between Germany and the ECB: “Has gained immense power…”
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