The future of economic governance in the EU - European Union Committee Contents


15 March 2011


Lord Hamilton of Epsom

Lord Harrison (Chairman)

Lord Haskins

Lord Jordan

Baroness Maddock

Lord Moser

Lord Trefgarne

Lord Vallance of Tummel

Lord Woolmer of Leeds

The Committee considered the draft report.

Paragraphs 1 to 246 were agreed to, with amendments.

It was moved by Lord Hamilton of Epsom to insert after paragraph 246:

As we look to the future, we feel that serious consideration should be given to enlarging the role of the European Central Bank in the economic management of the Eurozone.

The ECB already has responsibility for monitoring the banking sector in the Eurozone and we feel that in time their remit should be extended to the surveillance of national economies, asset bubbles, growth in private debt and any other economic developments that might destabilise the Euro.

Rather than being the lender of last resort, playing a role when serious debt and funding problems have arisen, the ECB should provide early warning and seek to address difficulties before they become crises. The ECB would be expected to produce regular reports on the economic health of all Eurozone nations. Inevitably these reports would influence financial markets and give the ECB great influence over the economic policies of nations within the Eurozone.

If the ECB assumed this role, we recognise that this would raise issues of accountability that should be considered further.

The Committee divided:
Contents   Not-contents
Lord Hamilton of Epsom   Lord Harrison
Lord Moser   Lord Haskins
Lord Trefgarne   Lord Jordan
Baroness Maddock
Lord Vallance of Tummel
Lord Woolmer of Leeds

The amendment was disagreed to accordingly.

Paragraphs 247 to 289 were agreed to.

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