The European Central Bank feels that its monetary policy stance is appropriate and no reassessment is justified at this stage, explained the Frankfurt-based bank’s vice-president, Vitor Constancio, on Monday 10 April. Constancio had come to present the ECB’s annual report to MEPs on the economic and monetary affairs committee.
The ECB vice-president added: ‘We continue to stand ready to react to downside shocks. While cyclical conditions have improved, we still need to address, without delay, the legacy of the crisis and reinforce the structural underpinnings of our Union (UEM, Ed.).’ Asked about the idea of a budget for the Eurozone, he simply said that that this was an area covered in the Five Presidents’ Report on the future of EMU. He did not give his opinion about the feasibility of a European Monetary Fund as a way to free up the European Stability Mechanism, simply replying that the idea had not been included in the Five Presidents’ Report.
One idea circulating about a European Monetary Fund is to give it budgetary surveillance powers currently held by the European Commission. Vitor Constancio said that implementation of the Commission’s economic recommendations was ‘disappointing.’
The day before what would have been the 97th birthday of a former president of the European Parliament, Emilio Colombo, Vitor Constancio quoted Colombo's words, saying they had a particular resonance now that a member state has notified its plan to leave the EU. ‘We have no reason for complacency about the present state of Europe in spite of the efforts we have made. As Europeans, we can make a real impact when we manage to find the right joint solutions to the problems of our time.’ (Original version in French by Élodie Lamer)