European Parliament resolution on the 2000 Annual Report of the European Central Bank (C5-0187/2001 — 2001/2090(COS))
Date: 2001-07-04
Institutions: European Parliament
Subjects: European Central Bank, activity report, price stability, single monetary policy, transparency in decision-making

14.3.2002

EN

Official Journal of the European Communities

C 65 E/159

will contribute to the stability and peace of the continent; emphasises once again that full and complete
respect for basic human rights and respect for the rule of law should be considered as a fundamental
requirement for any country participating in the process of European integration;

Wednesday 4 July 2001

*

*

*

Instructs its President to forward this resolution to the European Council, the Council, the Commis-

48.
sion and the parliaments of the Member States.

13. ECB Report

A5-0225/2001

European Parliament resolution on the 2000 Annual Report of the European Central Bank
(C5-0187/2001 (cid:129) 2001/2090(COS))

The European Parliament,

(cid:129) having regard to the Annual Report 2000 of the European Central Bank (C5-0187/2001),

(cid:129) having regard to Article 113 of the EC Treaty,

(cid:129) having regard to Article 15 of the Statute of the European System of Central Banks and of the Euro-

pean Central Bank,

(cid:129) having regard to Rule 40 of its Rules of Procedure,

(cid:129) having regard to its resolution of 2 April 1998 on democratic accountability in the third stage of

EMU (1),

(cid:129) having regard to its resolution of 27 October 1999 on the 1998 Annual Report of the European

Central Bank (C4-0211/1999) (2),

(cid:129) having regard to its resolution of 6 July 2000 on the 1999Annual Report of the European Central

Bank (C5-0195/2000 (cid:129) 2000/2118(COS)) (3),

(cid:129) having regard to its motion for a resolution on the adoption of an initiative as a gesture of solidarity
on the occasion of the entry into circulation of the single European currency, the euro (B5-0029/
2001), tabled by Sartori, Agag Longo, Banotti, Bourlanges, Cox, De Clercq, Gil-Robles Gil-Delgado,
Hermange, Karas, Korhola, Kratsa-Tsagaropoulou, Martens, Poettering, Quisthoudt-Rowohl, Ribeiro
e Castro, Santer, Smet, Stenzel and Van Velzen,

(cid:129) having regard to the report of the Committee on Economic and Monetary Affairs (A5-0225/2001),

A. whereas the ECB has fulfilled its mandate, given that the failure of meeting the 2 % inflation target is
mainly due to exogenous and extraordinary factors such as the increase of energy prices and the
financial consequences of BSE and foot-and-mouth disease,

B. whereas, pursuant to Article 105 of the EC Treaty, the ECB(cid:146)s primary objective is to maintain price
stability and whereas its contribution to growth and employment lies first and foremost in the achiev-
ement of that objective,

C. whereas the mandate of the ECB is primarily focused on safeguarding internal price stability and

therefore distinct from the mandate of other central banks,

(1) OJ C 138, 4.5.1998, p. 177.
(2) OJ C 154, 5.6.2000, p. 60.
(3) OJ C 121, 24.4.2001, p. 456.

C 65 E/160

Official Journal of the European Communities

EN

14.3.2002

Wednesday 4 July 2001

D. whereas the phenomenon of financial (cid:145)bubbles(cid:146) recently witnessed in equity markets may have an

impact on the conduct of monetary policy,

E. whereas a stable and predictable monetary policy is vital for international financial stability by reduc-

ing the volatility of financial asset prices,

F. whereas the ECB has succeeded in winning the esteem of observers by the quality of its publications

and a consistent strategy over time aimed at ensuring economic stability in the euro area,

G. whereas the ECB should continue on the path on which it is already engaged, marrying independence

with increased transparency and democratic accountability,

H. whereas the recent adoption by Parliament of a regulation on public access to documents of the
European Union reopens the question of the transparency of the ECB; whereas the ECB should exam-
ine whether a move towards greater transparency would be appropriate, e.g. by rewriting the minutes
to render them anonymous,

I. whereas a communication policy aimed at disclosing the content of Governing Council debates is

likely to improve the quality of economic debate in Europe,

J. whereas ECB forecasts (called (cid:145)projections(cid:146)) are plagued by the extensive recourse to ranges in the
results published, blurring the interpretation and depriving them of much of their explanatory content,

K. whereas the enlargement process should trigger a reform of the structure of the leading bodies of the

ECB within the framework set out in the Nice Treaty,

1. Welcomes the ECB(cid:146)s efforts to shape its own profile by identifying a specific monetary policy
response for Europe;

2. Welcomes the fact that the ECB has managed to achieve monetary stability during the year 2000,
despite oil and commodities price surges, high volatility on foreign exchange markets and, more generally,
increased tensions on financial markets;

Invites the ECB to reconsider its assumptions of the growth potential in Europe in the light of new

3.
technologies and recent improvements in European employment policies;

Recalls that monetary policy must be complemented by adequate structural reforms and reiterates its
4.
request for enhanced cooperation between Member States, which must result in the strong disapproval of
Member States which fail to comply with agreements entered into;

Advocates the strengthening of economic policy coordination by the revival of the macroeconomic
5.
dialogue, by interlinking more closely the broad economic policy guidelines and the stability and growth
programmes, and by using the broad economic policy guidelines in a more efficient way with a view to
promoting growth and employment, stability and social inclusion; notes however that economic coor-
dination must not jeopardise fruitful competition between the Member States on the best financial and
economic policy model;

Considers that closer attention should be paid to the impact of interest rate modifications on econ-

6.
omic growth and employment;

Is concerned by the fact that the US Federal Reserve seems primarily to be oriented towards asset

7.
prices (cid:129) an example that the ECB should not follow;

Encourages the ECB to consolidate its two pillar approach by reducing the weight attached to M3,

8.
given the substantive uncertainties concerning predictive qualities of monetary aggregates;

9.
Appreciates the improved monetary dialogue conducted on a quarterly basis between the President of
the ECB and the members of the Committee on Economic and Monetary Affairs of the European Parlia-
ment, which leads to a better mutual understanding;

14.3.2002

EN

Official Journal of the European Communities

C 65 E/161

Wednesday 4 July 2001

10. Welcomes the open attitude of the ECB in its monetary dialogue with the Parliament, which has led
to a number of improvements in the ECB(cid:146)s communication strategy, including the publication of forecasts
and the area-wide model, the latter could nevertheless be made more user-friendly;

11.
Suggests nevertheless that the ECB Council explicitly endorses the forecasts of its own economic
department and corresponding units of NCBs, and that the ECB forecasts be remodelled in order to provide
a more detailed central scenario with precise figures and not just ranges, including a detailed assessment of
headline and core inflation trends; underlines that this forecast should not only be a staff paper but an
official ECB Council document;

12.
Calls on the ECB to publish an econometric model which is user-friendly, and to publish, a half-
yearly overall report of economic developments in each of the euro-area countries, comparable to the
Beige Book of the US Federal Reserve, as this would facilitate comparison of best practice, enable early
warnings of potential problems within the euro-area which might require policy action by respective
governments and provide for a reliable basis for wage negotiations and optimising public spending;

13.
Regrets that steps have not been taken to publish the arguments which are discussed at the ECB
Governing Council and calls again for the minutes to be published; proposes in this context that a sum-
mary of the stance of both the approving and dissenting parties should be published;

14.
Proposes that the Governing Council should vote on monetary measures at the end of each meeting
and that the results of these votes should be published in an anonymous way to avoid inappropriate
pressures on the Governing Council members; reiterates Parliament(cid:146)s long-standing view the ECB publish
summary minutes of each Governing Council meeting shortly after the subsequent Governing Council
meeting;

15.
Suggests that the quarterly monetary dialogue with the European Parliament should be the forum
where the ECB develops its strategy, and that transparency does not just mean formal transparency but
also transparency as regards the reasoning behind monetary policy decision making;

16.
Recalls its preference for greater involvement of Parliament in the nomination of ECB Executive
Board members, including the capability to confirm their appointment, and calls for this aspect to be
considered at the next IGC;

Notes the enabling clause introduced in the Nice Treaty with a view to enlargement, allowing the

17.
ECB to launch an initiative regarding voting procedures in the Governing Council;

18.
Stresses however the need for an efficient voting system, aimed at an accurate depiction of Europe(cid:146)s
economic landscape; notes the International Monetary Fund(cid:146)s system of constituencies as a possible model
for the ECB to follow;

19.
Recalls that there is neither an opt-out nor an automatic link between EU membership and par-
ticipation in Monetary Union for accession countries, and that the introduction of the single currency
requires successful participation in the Exchange Rate Mechanism as well as strict compliance with the
convergence criteria laid down in the Treaty;

20.
Shares the view expressed by the ECB, that ERM II is sufficiently flexible to be adopted by accession
countries in the transition period leading to full participation in Monetary Union, while unilateral adoption
of the euro would not be an alternative to prepare the introduction of the single currency;

Underlines the euro(cid:146)s contribution to international economic financial stability in making the euro

21.
area less vulnerable to external shocks;

22.
Regrets that the euro(cid:146)s external value does not reflect the price stability achieved in the euro zone,
while recalling that exchange rate policy is not a primary objective for the ECB and should not therefore
be overestimated;

C 65 E/162

Official Journal of the European Communities

EN

14.3.2002

Wednesday 4 July 2001

23.
Supports the commitment of the ESCB to help improve the institutional framework for the stability
of the financial system and underlines the need for close involvement of the ESCB in macro-prudential
supervision according to its mandate; stresses the importance of maintaining a clear distinction between
the responsibilities of financial supervisors and those of the monetary authorities in order to ensure that
the ECB has no conflict of interest with its primary objective of price stability;

24.
Stresses that the current reform of financial supervision in Member States must take into account
the role of the ECB and NCBs with respect to safeguarding financial stability and the development of
mechanisms for crisis prevention and resolution;

25.
Appreciates that the ECB has always given full support to Parliament(cid:146)s demands for improvements
to cross-border retail payments in Europe, as progress in this area is vital for public acceptance of the euro;

Urges the ECB to take more determined action on behalf of the ECB and the Commission, as bank-
26.
ing charges for cross-border payments continue to be significantly higher than for domestic transactions;
calls on all interested parties, notably the Commission, Council and the ECB, to agree a clear road map of
actions and deadlines to deliver a single payments area within the euro-area in which all payments will be
made on the same terms whether within national borders or across them;

27. Welcomes the fact that technical preparations for the final phase of the introduction of the euro are
well underway, in close cooperation with NCBs and governments;

Gives its active support to the euro 2002 information campaign aimed at preparing the changeover

28.
to euro banknotes and coins, which will make the euro a (cid:145)real life(cid:146) currency for citizens;

29.
Regrets that its repeated request to bring forward and extend frontloading of small denomination
banknotes to individual citizens has not been met, as it would have allowed them to become familiar with
the new money at an early stage, and invites the competent authorities to reconsider their position;

30.
Invites the ECB, the Commission and Member States to coordinate and intensify their efforts in
ensuring the cash changeover period is not misused for price increases; considers that governments must
set a good example in this respect;

Underlines that while the ECB is currently adequately staffed, it should be allocated adequate means

31.
in the event of new roles being granted to the ECB;

Recalls the right of the ECB staff and its legitimate unions to be informed thoroughly and in a

32.
timely manner of all matters relevant to the working conditions in the ECB;

Instructs its President to forward this resolution to the Council, the Commission and the European

33.
Central Bank.

14. Changeover to the euro

A5-0222/2001

European Parliament resolution on means to assist economic actors in switching to the euro
(2000/2278(INI))

The European Parliament,

(cid:129) having regard to the Commission Recommendation of 11 October 2000 on measures to facilitate the

preparation of economic operators for the changeover to the euro (2000/C 303/05) (1),

(cid:129) having regard to its resolution of 16 December 1998 on the communication from the Commission on

the information strategy for the euro, (COM(1998) 39 (cid:129) C4-0125/1998) (2),

(1) OJ C 303 24.10.2000, p. 6.
(2) OJ C 98, 9.4.1999, p. 167.