6 Feb 2015 - How to get rid of the undemocratic power of ECB (European Central Bank)

6 Feb 2015 - How to get rid of the undemocratic power of ECB (European Central Bank)


The TFEU states that the EU has exclusive competence in monetary policy for the Member States whose currency is the euro (Article 3.1c, TFEU). On the same legal instrument, section 282.1 states that the ECB and the national central banks in the euro area are the entities responsible for managing the EU currency. Protocol n. 4 annexed to the treaties enacts the Statute of the ECB and the European System of Central Banks (ESCB). This protocol has the same legal status as the treaties (Article 51, TFEU). The three possibilities for structuring the monetary authority can be summarized as below (table 2).

In the current discussion fueled by the new Greece government, about the undemocratic status of the Troika, especially ECB and IMF (certainly now JC Juncker has pronounced the intention of decreasing ECB and IMF powers) it is important to learn how to lessen the powers of ECB.

ECB and IMF have, by PAST treaty and not current democracies, become supranational powers that by definition act more in the interest of Capital Establishment than overall economic growth, and certainly economic growth of the labour share of GDP. ECB and IMF are certainly totally desinterested in issues of welfare DISTRIBUTION, which is one of the main topics of Piketty.

Regarding the Greek issue, and extension of the bailout re-arrangement period towars end of May instead of February 28 2015, it would be a good attempt to try to REVISE the relevant TFEU articles of pre 2000 in order to transfer the highest authority of euro currency management to the EU.

The ECB would then be ´governed´ by the Member States of the EU, instead of the ECB dictating the EU countries what to do based on a pre-2000 Treaty that does not anymore reflect the choice of current democracies.

Interesting food for thought is provided by underneath scientific article comparing the legality of FED, ECB (European Central Bank) and BACEN (Brazilian central bank)

http://www.xn--jxafi7ax1b.gr/SSRN-id2091206-legal-basis-of-central-banks-including-ECB-European-Central-Bank.pdf

Philippe Blankert, 6 February 2015