Two-faced ECB needs democratic scrutiny

Date

12 Dec 2013

Sections

EU Priorities 2020
Euro & Finance
"The ECB which is lowering interest rates is the same ECB which is imposing wage reductions through the Troika programmes" Marisa Matias

Press release

GUE/NGL MEP Marisa Matias has highlighted the Troika's failings before European Central Bank (ECB) President Mario Draghi in a European Parliament plenary debate this morning.

The debate took place ahead of this afternoon's vote on the 2012 ECB annual report.

Matias said: "I'd like to highlight the elephant in the room that we often omit from these debates: using interest rates to fight the crisis is a way for the ECB to bring down wages in the countries covered by the Troika programmes, and it just makes the essential problem worse. The essential problem is a lack of internal demand due to austerity. If we remain on this course the recession will continue."

"The Troika does not work democratically and this is a serious problem," she continued. "On top of that there is the question of conditionality: outright monetary transactions are hinged on conditionality imposed on the countries subject to the intervention programmes. We could call this a sort of Troika 2.0."

The vote on the ECB 2012 report (PITTELLA) will take place today at midday.

 

GUE/NGL Press Contacts:

Emily Macintosh +32 470 85 05 08

Gay Kavanagh +32 473 84 23 20

European United Left / Nordic Green Left

European Parliamentary Group

www.guengl.eu

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