Franse regering wenst meer aandacht ECB voor stimulering economische groei (en)

Pressure is mounting on the European Central Bank to cooperate more with EU economic leaders, as the top bank prepares for its board meeting on Thursday (1 September).

The ECB is expected to keep the eurozone's main interest rate unchanged at 2 percent for the 27th consecutive month, despite calls for changes in the bank's monetary policy from several of the bloc's prominent members.

French foreign minister Philippe Douste-Blazy said at a gathering of French ambassadors on Tuesday (30 August) that there should be better cooperation between the Frankfurt-based bank and European capitals to boost economic governance in the monetary union.

He argued that the lack of such a dialogue means the euro is an "unfinished project", adding: "Let us not leave economic and budget policy to the European Central Bank, let us not leave it just to the European Commission, to people who are not elected", the FT reports.

Price stability - above all

The statement follows a series of similar pleas by Italy and Germany, mainly criticising inaction on the interest rate front.

However, Jean-Claude Trichet, ECB president, remains reluctant to give in.

Speaking at a central bankers' summit in the US over the weekend, Mr Trichet played down "policy activism" as unnecessary, comparing the central bank's role to that of a "light-ship in a storm", which can sometimes be of better service by providing a clear assessment "of the fundamental state of economy" rather than by taking action.

He argued that too much action on monetary policy could confuse markets, defending ECB policy as crucial for achieving one of its main goals - price stability (defined as keeping inflation below but close to 2 percent).

Analysts suggest that European politicians could boost the powers of the eurogroup meetings of eurozone finance ministers, or even go as far as to open a debate on the bank's mandate in their bid to bring the bank to heel.

However, there is no unilateral agreement among member states on strategy, with German opposition figures and the leaders of several other countries calling for the ECB's independence to remain untouched.