scispace - formally typeset
Open AccessJournal Article

The new ECB and its relationship with the eurozone Member States: Between central bank independence and central bank intervention

Thomas Beukers
- 01 Jan 2013 - 
- Vol. 50, Iss: 6, pp 1579-1620
Reads0
Chats0
TLDR
In this article, the authors focus on the pressure and influence exercised by the European Central Bank (ECB) on the Member States of the Eurozone, a relationship traditionally studied from the perspective of central bank independence.
Abstract
The financial and sovereign debt crisis has had a great impact on the relationship between the European Central Bank (ECB) and the Member States of the Eurozone, a relationship traditionally studied from the perspective of central bank independence. This article takes a different perspective on that relationship, namely that of central bank intervention in Member State economic policy making. It focuses on the pressure and influence exercised by the ECB on the Member States of the eurozone. The two perspectives combined reveal the nature of the ever more frequent and intense interaction between the ECB and the Member States of the eurozone. In the crisis, several different forms can be identified of ECB pressure on eurozone Member States to adopt reforms in the areas of fiscal policy and structural reforms, marking a shift from interaction to central bank intervention. This ECB intervention is parallel to an equally unprecedented intervention by the collective of eurozone Member States in the economic policy of several Member States through the economic policy conditionality linked to financial assistance. The article analyses several instances of ECB intervention, offers an explanation and a theoretical framework for normatively assessing it. The main risk identified for the ECB in this article is that of being perceived as a political or politicized actor, although it is acknowledged that the ECB is confronted with a difficult balancing act. The ECB should be more cautious in its approach, the further an issue is from its core mandate of securing price stability.

read more

Citations
More filters
Journal ArticleDOI

Beyond Integration Theory: The (Anti‐)Constitutional Dimension of European Crisis Governance

TL;DR: In this paper, legal studies find that a number of emergency measures were taken on an extra-legal basis and through quasi-autocratic procedures in the EU's legal order, and they interpret this practice as a form of transnational state of exception which transitions into permanent traits of authoritarianism.

Governing imbalances in the economic and monetary union: A political economy analysis of the macroeconomic imbalance procedure

D.J. Bokhorst
TL;DR: Bokhorst as mentioned in this paper examines the extent to which the MIP manages to have an effect on a change of policies in Member States and also asks to what extent it constrains domestic democratic decision-making.
Journal ArticleDOI

Euro crisis responses and the EU legal order : increased institutional variation or constitutional mutation?

TL;DR: The Euro crisis reforms as major example of interstitial institutional change in the EU as mentioned in this paper, and forms of institutional change : unusual sources of law, new tasks for the EU institutions, new organs, competence creep, institutional hybrids, and more differentiated integration.
Dissertation

Gobierno económico y financiero de la Unión Europea. Contextos, normas, crisis

TL;DR: In this article, a discussion of the role of the Derecho in the context of economic and financiero reformas in the ambito economic and finance in the Eurozone is presented.