Transcript Présentation PowerPoint - EESC European Economic and Social

European Economic and Social Committee
EUROPEAN INDUSTRY AND MONETARY POLICY
The role of the European Investment Bank
MAIN PROVISIONAL CONCLUSIONS
(To be adapted taking into account the
content of the Round Table)
Preliminary Draft
November 05 2015
1. Monetary policy should be more focused
.. Efficiency of Eurozone monetary policy transmission –
its link to real economy- should be improved
.. Particularly, making sure that resources get to the real
economy and do not stay remained in the financial
system, out of the Eurozone or in financial speculation
.. Without increasing the overall risk of the Eurosystem,
the highest proportion of monetary expansion should
finance productive activities, related to sustainable
growth.
2. Involving the EIB, a good solution
.. The involvement of the European Investment Bank
(EIB) or other public promotional banks or
agencies from the EU or the member states seems
to be a good way to improve the efficiency of
monetary expansion, its relationship with real
economy and with productive activities.
3. Better results with fewer resources and lower risk (I)
.. The collaboration ECB-EIB should increase the
efficiency of monetary policy and so, should make
possible that better results and impact in real economy
are achieved with a lower risk.
3. Better results with fewer resources and lower risk (II)
For this purpose:
A.
ECB and EIB should make an intensive use of the different positions
that EIB can take in monetary policy transmission without increasing
risks usually taken with banks:
-
Through loans channeled by EIB to banks
-
Providing funds to EIB and national promotional banks or agencies
in similar ways as they are provided to commercial banks.
-
Buying EIB and NPBs bonds or accepting them as collateral in
similar ways as government bonds are bought or accepted.
3. Better results with fewer resources and lower risk (III)
B. ECB and EIB could accept operating through EIB even
with a higher risk than in other ECB operations. It could
be acceptable taking account of the higher efficiency of
these funds from the point of view of monetary policy
transmission.
This higher risk with funds provided to EIB would be
compensated with lower risks directly taken with
commercial banks. This way, the overall Eurosystem
risk would not increase or would decrease.
3. Better results with fewer resources and lower risk (IV)
C. The ECB-EIB collaboration could go further. Systematic
advice from the EIB could be of the greatest
importance for a better focusing of the monetary
expansion, even in operations directly related to
commercial banks. This advice could be mainly related
to the conditionalities to be established when banks
receive funds generated in monetary expansion, to
ensure that these funds are channeled to real and
productive economy.
3. Legal issues can be solved (I)
..
Even with a restrictive interpretation of the
independence principle of the Eurosystem, the structural
collaboration between the Eurosystem and the EIB can be
implemented –by free decision of the ECB- through
different ways.
..
The ECB-EIB collaboration should be subjected to the
monetary policy objectives and, just for this purpose, it
should establish a more efficient transmission mechanism
between Eurosystem and money supply, stability of
prices, real economy and growth.
3. Legal issues can be solved (II)
ECB and EIB should work together in exploring the specific characteristic of this
collaboration. Some options can be envisaged:
..
Transferring resources to the EIB balance:
a) Directly: ECB loans to the EIB
b) Indirectly: Purchase by the ECB of debt issued by the EIB
..
Without transferring resources to the EIB balance:
Setting up a Fund managed by the EIB but under the
Eurosystem / ECB ownership
Setting up a fund –or an entity- managed and owned by the EIB
Making use of the EIB expertise through advice, formal
reports or delegation in allocation of resources.
4. Technical issues can be solved (I)
..
Risk-sharing: Through the involvement of public
promotional banks or agencies in member states
..
Interest rates: The differential in rates is more an
opportunity than a problem
..
Liquidity: Through EIB bonds and/or more liquid
investments in the rest of monetary expansion
operations.
5.Why not a Collaboration Agreement between ECB and
EIB?
..
An adequate framework for a structural collaboration
..
It reflects that the collaboration obeys to the free decision of
both institutions and so, that their independence is fully
respected.
..
There are similar Collaboration Agreements between the EIB
and other European institutions.
..
It may be an adequate framework for sharing views, strategic
and operational issues and establishing a climate of mutual
collaboration.
6. On the role of the European Parliament
.. The European Parliament, as representative of the
general interest of the European people, and
according to its interinstitutional role, should be the
adequate body to take the initiative in promoting this
kind of mutual collaboration between the ECB and
the EIB.
.. In this way, the European Parliament should make
sure that the EU institutions adequately develope
their main functions both in investment policy and
in monetary policy.
7. On the role of the European Central Bank (ECB) and
the European Investment Bank (EIB)
.. Of course, as parts of the collaboration we
propose, ECB and EIB should play an active role in
starting the necessary negotiations to prepare the
collaboration agreement.
7. On the role of the European Central Bank (ECB) and
the European Investment Bank (EIB)
..
In particular, the Board of Governors of the ECB and the Board
of Governors of the EIB should take a declarative decision in
favor of such an approach. For that aim, a common working
team should be created between ECB and EIB so as to clarify
the interest and the feasibility of the proposed collaboration
and, in other case, to propose alternative measures to
improve the efficiency of the transmission of Eurozone
monetary policy to the real economy. In particular, EU
institutions should guarantee that monetary expansion is
adequately committed to real economy, development and
growth.
Thank you for your attention