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ECB chief asks for change to EU reform treaty

14 August 2007, 18:24 CET
ECB chief asks for change to EU reform treaty

Photo Jean-Claude Trichet

(FRANKFURT) - European Central Bank chief Jean-Claude Trichet has asked for modifications to a newly agreed reform treaty for the European Union, a letter on the ECB website said Monday.

In a letter to the Portuguese presidency of the EU dated August 2, Trichet asks that the ECB be removed from a list of European institutions included in the treaty in order to protect its independence.

Trichet underlined that the ECB had expressed "a strong view" in past EU constitutional discussions that "because of its specific institutional features, the ECB needs to be differentiated from the 'Unions' institutions'."

By including the bank in a list of EU institutions there is a risk that EU member states could formulate policy recommendations to the ECB, an ECB spokesman explained.

The credibility of the ECB, like other central banks, is based on its independence and its protection from political interference.

The Frankfurt-based institution has responsibility for setting interest rates for the 13-member eurozone.

After the failure of the European Constitution, the 27 members of the European Union agreed a new reform treaty in July that proposes a number of changes to the working of the bloc and attempts to simplify existing treaties.

The proposed treaty has now been sent to the Intergovernmental Conference, which has a responsibity for drawing up the agreement in legal terms.

The ECB has recently been the subject of attacks from French President Nicolas Sarkozy, which are seen as threatening the independence of the bank.

Trichet has repeatedly stressed the importance of the independence of the ECB and that it should, according to existing EU treaties, be shielded from attacks from EU governments.

Sarkozy wants to see the policies of the bank oriented towards promoting growth and jobs in the eurozone, rather than simply being focused on controlling inflation.

Text and Picture Copyright 2007 AFP. All other Copyright 2007 EUbusiness Ltd. All rights reserved. This material is intended solely for personal use. Any other reproduction, publication or redistribution of this material without the written agreement of the copyright owner is strictly forbidden and any breach of copyright will be considered actionable.




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