Through its peculiar “Securities Market Programme”, the European Central Bank generated billions of profits for creditor Member States such as France and Germany. Our research shows that nearly €8 billion have been lost for Greece.
Switzerland’s recent referendum on sovereign money is a demonstration that the monetary system change cannot happen in one go. Education, cultural shift and political support are all necessary preconditions to achieve meaningful reforms.
Despite the supposed end of quantitative easing in December 2018, future reinvestments mean the ECB will purchase at least another 180 billion euros of bonds in 2019.
To protect Italy from unjustified market pressure, the European Central Bank should stand ready to activate its OMT programme and provide unconditional liquidity support to the new Italian government.
The evasiveness and lack of substance of the ECB’s feedback to the European Parliament reveal room for improvement in the practice of central bank accountability.