Debate on the ECB Annual Report, 2002

Speech by Chris Huhne MEP delivered to the European Parliament on Tue 2nd Jul 2002

[This speech was given to the plenary session in Strasbourg on 2 July 2002].

Let me address one specific measure that the parliament has requested before, and to which we have still not had a formal response from the governing council. I hope that will be rectified. This is the issue of publishing the balance of votes on an anonymous basis so that the markets - and the parliament - can assess the shift of opinion. You, Mr Duisenberg, have objected to such a move in the past because the governing council decides instead by consensus. I put it to you that you should not. You should decide by voting both because this would lead to more efficient decision making and because you are asked to do so in the treaties.

Let me make clear that I do not share the criticism of the ECB that it has acted over the last year too little and too late. In fact, the ECB first cut interest rates in May 2001 despite a continuing rise in inflation which had still to peak at 3.4%. It has honoured its monetary reference values only in the breach. And in 26 out of 41 months it has allowed inflation to exceed its 0 to 2 per cent range.

However, we know from the council of ministers that voting by consensus - in other words by unanimity - is slower and more difficult than voting by majority. For this reason alone, it would be sensible for the ECB to vote by majority in future. The fact that present procedures have not led to mistakes is not an argument against improving them, particularly when this is what the Treaty requires. Article 10 of the statute of the European System of Central Bank clearly states that the governing council shall act by a simple majority. I therefore hope that the governing council will also note its treaty obligations in the manner of its decision-taking.

There has been progress in transparency since I had the honour of being the parliament's first rapporteur on the ECB in 1999. We now have projections, publication of models, and regular appearances before the committee. However, the ECB is still no yet as formally open as its peers in publishing its votes or a summary minutes. I hope it will rectify that before we meet again.