[autom.vertaling] Het lof ECB' van het Comité van de economie; s het anti-inflationistische beleid, maar zegt de tariefstijgingen &quot zouden moeten zijn; ondernomen met caution" (en)

MEPs in the Economics Committee praised the ECB's handling of interest rate policy on Tuesday, while warning of the need for caution when raising rates to avoid endangering growth. In adopting their response to the Bank's annual report for 2005, they also called again for publication of summary minutes of rate setting meetings and stressed that nationality should not be a factor in filling seats on the Executive Board.

The own initiative report praises the ECB's policy of "concentrating on its most important objective, preserving price stability," and says it was correct to increase rates in 2005.  MEPs stress that the Bank must be aware of the risks to growth of continuous rate rises, but also continue to anchor inflationary expectations.

Board appointments and transparency

On appointments to the ECB Executive Board, MEPs stress that nationality should be irrelevant.  While stressing the treaty requirement for candidates with experience of monetary and banking matters, they also argue that it is important for a variety of backgrounds to be represented on the Board.

MEPs in the committee call, once again, for the publication of summary minutes of rate setting meetings, with clear statements of the arguments in favour and against decisions taken and the reasons why these decisions were taken.  This should not, they say, replace the current press conferences by the ECB President after such meetings, which provide "an invaluable and timely insight for observers and market participants".

Money supply and 500 euro notes

The report asks the ECB to take action with regard to the "persistently high values of the M3 money supply" and to investigate developments in the mortgage and mergers and acquisitions markets.  It also calls for a freeze on the number of 500 euro notes in circulation at its current level in the light of the nearly 21 per cent increase, which needs to be analysed.

Exchange rates and hedge funds

The report emphasises the risks of rapid adjustments in international disequilibria, and notes that Council has responsibility for exchange rate policy under the treaty, which does not however set out how that power should be exercised. MEPs in the committee invite the Eurogroup, ECB and Council to use their powers to the full, and step up coordination of their action in exchange rate policy.

The committee says the EU should "take the initiative in the debate which is getting underway globally - especially in the light of developments in the US - about the need to better control the activities of hedge funds" and calls for the ECB to carry out analyses of the issue.

Although many points in the report, originally drawn up by the Committee's chair, Pervenche Berès (PES, FR),  result from a compromise between the political groups, some contentious issues remain, which led MEPs from the Socialist group to abstain in the final vote.

ECB President Jean-Claude Trichet will take part in the plenary debate on the report on 26 October in Strasbourg.

09/10/2006

Committee on Economic and Monetary Affairs

Chair : Pervenche Berès (PES, FR)

Procedure: Own-initiative report

Plenary vote: October II, Strasbourg