This week the Dutch government blocked a proposal to activate a special credit line for countries who need financial support to fight the Covid19 crisis. But the logic behind the Dutch position is backward-looking and lacks diplomatic tact and political leadership.
There is little point in slowing down the contagion by forcing the economy to accelerate. Instead of blunt stimulus measures, the ECB must respond to the Coronavirus by launching targeted support for SMEs.
The ECB’s primary mission is to maintain consumer price stability, but while doing so it omits an important item of household consumption: the cost of housing. It is now time to fix this strange exception which induces biases in the design of the ECB’s monetary policy.
The recent declarations of new European Central Bank president Christine Lagarde on the possible role of her institution in the fight against climate change have revived pushbacks from central bankers and financial commentators against “green quantitative easing”. However, the critics have often misrepresented what campaigners actually want.
EU Treaties are no obstacle for the Eurogroup to take decisive actions in favour of gender diversity in the European Central Bank.