Brussels, 11/10/2006 (Agence Europe) - With the adoption by 23 votes for and none against but 15 abstentions of a report on the activities of the European Central Bank (ECB) in 2005, the EP Committee on Economic and Monetary Affairs praises ECB policy geared to price stability. A long series of amendments has diluted the initial version of the own-initiative report by the chairperson of the parliamentary committee, Pervenche Berès (PES, France), which mainly resulted in Socialists abstaining during voting. The plenary is to take a stance at the end of October.
In 2005, the ECB did well to focus on its main price stability objective, the report states, judging the rise in rates in December last as appropriate (EUROPE 9080). MEPs nonetheless recall that any rise in interest rates must be decided with caution so that growth is not compromised. On the question of appointments to the ECB Executive Board - the last one of which, that of Jürgen Strak, had illustrated the frustrations of the Parliament when faced with this procedure (mainly EUROPE 9174), MEPs simply stress that the criterion of nationality should not be taken into account, but do not call for more authority for their institution. They urge for a diversity of candidates to run, stressing that the candidates should have professional experience in monetary or banking matters, although they do not mention any eventual economic competences, which would open the door to candidates from other horizons. In terms of transparency, MEPs restate their call in favour of publishing the minutes of meetings on rates held by the Governing Council, in addition to the holding of press conferences after monthly meetings. Given the significant rise in €500 notes in circulation, the report also invites the ECB to freeze the number of such notes at their current level. In so far as the Treaty, under Article 111, confers upon the Council explicit powers on the euro's rate of exchange and general exchange policy guidelines but without really specifying the exercise, the MEPs consider it appropriate for the Eurogroup, the Council or the ECB to fully exercise their respective powers and to coordinate on this. Finally, they call on the EU to take the initiative for better control of hedge funds and call on the ECB to conduct analyses on this subject. (ab)