Labour Euro head blasts ECB secrecy
Thursday 21 January 1999
Alan Donnelly MEP, who as a senior member of the Economic and Monetary Affairs sub-committee grills the ECB president on policy decisions, says: "With the best will in the world, I do not believe the way the ECB is established is sustainable."
Mr Donnelly, a pro-European, is tipped to be the next chairman of the influential sub-committee. He said he was concerned by the "trend of secrecy" at the bank. "I do think we will see a rather different ECB, still independent of the politicians, by 2010."
Speaking at the launch of a major European study by the accountancy firm PricewaterhouseCoopers, Mr Donnelly criticised Wim Duisenberg, the ECB president, for being "too macho". "It would be very helpful if Mr Duisenberg realised he didn't have anything to prove."
Like many City economists, Mr Donnelly argued that the ECB should follow the example set by the US Fed and the Bank of England and publish the minutes of its meetings. He also said Mr Duisenberg should curb the influence of national central bank governors on European interest-rate policy.
His comments came as economists at PwC warned that an overly tight European interest-rate policy could fatally damage manufacturers in the euro zone. PwC said: "With the ECB continuing to take a relatively tough line, the euro might rise sharply against the dollar and the yen, further squeezing European companies. As a result, growth (in the euro zone) might fall to little more than 1 per cent in 1999 and even lower in 2000 as the downward spiral of confidence and spending undermines domestic growth."
Manufacturers in Germany and Italy already face "near-recessionary conditions", PwC warned. If too-tight interest-rate policy and global developments combine to produce a hard landing, this could tip of major European economies - such as Germany - into decline.
On balance, felt Rosemary Radcliffe, PwC chief economist, Europe should avoid a hard landing, but this depended on other factors, including no spillover of problems in Brazil to other regions and continued strong growth in the US.
Miss Radcliffe said business confidence even in vulnerable economies - Germany and Italy - was still substantially above that in the UK. PwC said there was substantial scope for more cuts in UK rates.
Also speaking at the PwC launch, Jacques Lafitte, a key economic advisor to Commissioner Yves-Thibault de Silguy, said he was confident that the ECB would react appropriately to the challenges ahead.
- 1 This restaurant has misunderstood the concept of 'cheese and biscuits'
- 2 Delhi bus rapist blames dead victim for attack because 'girls are responsible for rape'
- 3 PornHub turns masturbation into energy in bid to save the planet
- 4 Have sex with your iPad thanks to the new sex toy no-one asked for
- 5 The 'sex selfie stick' lets you FaceTime the inside of a vagina
Delhi bus rapist blames dead victim for attack because 'girls are responsible for rape'
PornHub turns masturbation into energy in bid to save the planet
Spiritual leader allegedly manipulated 400 men into removing testicles to be 'closer to God'
The 'sex selfie stick' lets you FaceTime the inside of a vagina
'This is what Islam tells us to do': A rare glimpse inside a Saudi Arabian prison – where Isis terrorists are showered with perks and privileges
New theory could prove how life began and disprove God
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
This is what it's like to be dead, according to a guy who died for a bit
Ukip would cut billions from Scottish budget to fund English tax cuts
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
End of the licence fee: BBC to back radical overhaul of how it is funded
iJobs Money & Business
£20000 - £21000 per annum + uncapped commission: SThree: As a graduate you are...
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
£15000 - £16000 per annum: Recruitment Genius: A Customer Service Advisor is r...
£22000 per annum + pension,bonus,career progression: Ashdown Group: An establi...