36 Amendments of Rasmus ANDRESEN related to 2022/2037(INI)
Amendment 41 #
Motion for a resolution
Recital D
Recital D
D. whereas acting within its mandate, the ECB has committed to contributing to the objectives of the Paris Agreement; whereas climate change can hamper the effectiveness of monetary policy, affect growth, and increase price and macroeconomic instability; whereas, without strong measures, the negative impact on the EU GDP could be severe;
Amendment 77 #
Motion for a resolution
Paragraph 4
Paragraph 4
4. NotWelcomes that fiscal and monetary policies have reinforced each other during the pandemic, preventing a repetition of the experience of the global financial crisis, when inadequate support for demand resulted in low growth, high unemployment, and financial instability; agrees with Vice President De Guindos’ statements on 4 July 2022 that fiscal policy should do its part by delivering targeted support to vulnerable groups in the current context; notes that higher taxes on higher earners or on industries and firms that are highly profitable in spite of the energy shock constitute less inflationary pressure compared to higher deficits; stresses that maintaining price stability today requires even closer coordination between fiscal, monetary and structural policies, as addressing supply- side shocks requires greater supply-chain resilience and a shift away from fossil fuels; recognises the limit of what inflation targeting regimes can achieve at the current juncture;
Amendment 94 #
Motion for a resolution
Paragraph 5
Paragraph 5
5. Welcomes President Lagarde’s statement that the current geopolitical crisis requires us to progress on EU fiscal integration; recalls that the Economic and Monetary Union cannot function smoothly without a fiscal capacity at European level to respond to external shocks; stresses that completion of its institutional architecture is a prerequisite to strengthening the international role of the euro; recalls that a centralised fiscal capacity could help to address the imbalances in the current economic and monetary union, in which a single monetary policy coexists with a fiscal policy that is fragmented along national lines;
Amendment 108 #
Motion for a resolution
Paragraph 6
Paragraph 6
6. Echoes President Lagarde’s call for a swift revision and simplification of the Stability and Growth Pact; calls for the new framework to consider the extensive public investment needed for the energy transition, also to avoid the extreme price volatility deriving from Europe’s dependence on fossil fuels;
Amendment 115 #
Motion for a resolution
Paragraph 7 a (new)
Paragraph 7 a (new)
7 a. Recalls that fossil fuels are responsible for much of the recent strong increase in prices, with headline inflation reflecting the sharp rise in oil and gas prices; emphasises that the current bout of inflation is widely recognised as a supply-side phenomenon, making monetary policy tools unsuited to drive down inflation; welcomes repeated acknowledgements by the ECB that raising interest rates will not bring down energy prices nor will it impact inflation in the short term;
Amendment 120 #
Motion for a resolution
Paragraph 7 b (new)
Paragraph 7 b (new)
7 b. Is concerned that profits in the energy and food sectors have markedly risen as a key contributor to inflation, with the average quarterly contribution of profits to inflation standing at 15% in 2022, compared with 2.5% in 2018, 5% in 2019 and 4% in 2020; calls on the ECB to regularly publish the data on the contribution of profits to inflation, as is done with wages; questions whether any monetary policy response could address the market powers of such price-setters, unlike tax and competition policy;
Amendment 129 #
Motion for a resolution
Paragraph 8
Paragraph 8
8. Takes note of recent ECB monetary policy decisions to raise rates by 50 and 75 basis points in July and September 2022; is concerned about the implications of such policy decisions for growth and employment; notes that earlier policy tightening by the ECB would not have been likely to prevent an energy price driven inflationary episode;
Amendment 145 #
Motion for a resolution
Paragraph 9
Paragraph 9
9. Observes that there is little evidence that rising inflation is spurring a wage-price spiral, not least given the extent of wage restraint in recent years; notes that for the second quarter on 2022, the growth of negotiated wage settlements came in at only 2.1 per cent;
Amendment 146 #
Motion for a resolution
Paragraph 9 a (new)
Paragraph 9 a (new)
9 a. Notes the lack of empirical evidence for the role of inflation expectations in inflation outcomes, let alone self-fulfilling spiral; notes that influencing inflation expectations is given as one of the main reasons for the rate hikes by the ECB; calls on the ECB to further look into the role of inflation expectations and how they are influenced by ECB’s announcements and action;
Amendment 152 #
Motion for a resolution
Paragraph 10
Paragraph 10
10. Recalls that the ECB strategy review reconfirmed the medium-term orientation of inflation targeting; calls on the ECB to faithfully target this medium- term horizon; is concerned that following a long and careful debate on the ECB’s new monetary policy strategy, in this moment of crisis the goalposts risk shifting rather rapidly, with a sudden shift to targeting current inflation rather than the medium-term horizon that inflation targeting is thought to influence;
Amendment 156 #
Motion for a resolution
Paragraph 10 a (new)
Paragraph 10 a (new)
10 a. Is concerned about the ECB’s continued reliance on third party sovereign bond ratings in its collateral framework, in spite of repeated calls to end this risky practice; calls on the ECB to change collateral eligibility requirements so as to remove this power from private credit rating agencies;
Amendment 164 #
Motion for a resolution
Paragraph 11
Paragraph 11
11. Welcomes the ECB’s decision not to engage in quantitative tightening; calls on the ECB to keep this line to avoid putting further pressure on sovereign bond markets;
Amendment 174 #
Motion for a resolution
Paragraph 12
Paragraph 12
12. Stresses that an even transmission of monetary policy is vital to the achievement of the ECB’s price stability mandate; notunderlines that excessive divergence in sovereign yields makes credit conditions inconsistent with the uniform transmission of monetary policy and could cause financial instability; welcomes the ECB’s decision on 15 June 2022 to apply flexibility in reinvesting redemptions that are due under the pandemic emergency purchase programme; welcomes the launch of the Transmission Protection Instrument to support the effective transmission of monetary policy across the euro area;
Amendment 181 #
Motion for a resolution
Paragraph 13
Paragraph 13
13. Notes with concern that the combination of cheap targeted longer-term refinancing operations (TLTROs) and higher interest rates allow European banks to earn billions in extra profit; regrets the fact that the ECB has not yet addressed this issue and urges the ECB to do so as a matter of urgency; stresses that it is unacceptable for the ECB to provide banks with a taxpayer-backed profit while it is raising borrowing costs for households and businesses and most commercial lenders are paying bonuses to staff and distributing dividends to investors;
Amendment 186 #
Motion for a resolution
Paragraph 13 a (new)
Paragraph 13 a (new)
13 a. Worries about lack of monetary policy coordination among central banks around the world and a resulting global over-reaction to inflation as simultaneous rate hikes add up to unprecedented tightening; warns that monetary tightening during a worldwide stagflation can result in a beggar-thy-neighbour policy, as it may export inflation to trade partners, pushing foreign central banks to further tighten; calls on the ECB to initiate international coordination with other central banks to prevent excessive aggregate tightening of global monetary conditions;
Amendment 212 #
Motion for a resolution
Paragraph 15
Paragraph 15
15. Calls on the ECB to coordinate with the European Parliament to specify the secondary objectives; suggests taking advantage of this resolution to specify and prioritise the policy areas where the ECB is expected to deliver on its secondary objectives, as suggested by President Lagarde in November 2021;
Amendment 234 #
Motion for a resolution
Paragraph 18
Paragraph 18
18. Reaffirms that achieving the Union’s climate goals and ensuring a just transition are the top priorities of the EU’s general economic policies, which the ECB is expected to support; welcomes that the ECB is committed to supporting the green transition; recalls that this requires massive investments, a goal the ECB is well placed to support;
Amendment 240 #
Motion for a resolution
Paragraph 19
Paragraph 19
19. Considers that the ECB should contribute to reducing inequality; calls on the ECB to ensure that the costs of its monetary policy operations are not disproportionately borne by lower income strata, also considering that wealth and income inequality negatively affect the effectiveness of monetary policy transmission; invites the ECB to assess the effects of its monetary policy decisions on employment;
Amendment 242 #
Motion for a resolution
Paragraph 19 a (new)
Paragraph 19 a (new)
19 a. Calls on the ECB to better integrate the secondary mandate considerations when implementing, executing and explaining its monetary policy, increasing transparency by reporting on its interpretation and incorporation of its secondary mandate during press conferences and in its annual report to Parliament; and by systematically offering proportionality analysis of the side effects on areas of economic policy that pertain to the ECB's secondary objective;
Amendment 249 #
Motion for a resolution
Paragraph 20
Paragraph 20
20. Stresses that addressing the climate emergency and the euro area’s dependence on fossil fuels touches not only upon the ECB’s secondary mandate, but also its primary mandate, given the serious threat these issues pose to price stability; underlines that high fossil fuel prices are the major responsible for the recent strong increase in euro area inflation, reflecting “the legacy cost of the dependency on fossil energy sources, which has not been reduced forcefully enough over the past decades”;
Amendment 252 #
Motion for a resolution
Paragraph 20 a (new)
Paragraph 20 a (new)
20 a. Recalls that the ECB, as an EU institution, is bound by the EU’s commitments under the Paris Agreement; emphasises that this requires an integrated approach reflected in all its policies, decisions and operations, in line with its mandate of supporting the general economic policies of the Union, in this case, the achievement of a climate-neutral economy by 2050, as outlined in the European Climate Law;
Amendment 258 #
Motion for a resolution
Paragraph 21
Paragraph 21
21. Welcomes the Governing Council’s decision to take further steps to include climate change considerations in the Eurosystem’s monetary policy framework, and specifically the decision to overcome the market neutrality principle while embracing carbon neutrality;
Amendment 266 #
Motion for a resolution
Paragraph 22
Paragraph 22
22. Highlights the ECB’s acknowledgement of the carbon bias in its portfolio and the accumulation of climate risks in its balance sheet; underlines that according to available data, 62.7 % of ECB corporate bond purchases take place in the sectors that are responsible for 54.8 % of euro area greenhouse gas emissions; Welcomes the ECB’s announcement to decarbonise its corporate bond holdings; calls for the ‘tilting’ of the ECB’s portfolio to be swift rather than gradual, especially considering that it will apply only to reinvestment of maturing corporate bonds, accounting to around 10% of corporate bond holdings;
Amendment 272 #
Motion for a resolution
Paragraph 23
Paragraph 23
23. Welcomes, furthermore, the announcement on the greening of the ECB’s collateral framework; regrets, however, that this will be limited to instruments issued by non-financial corporations, which represent only a small fraction of the instruments that banks pledge as collateral; stresses that the lack of climate disclosure requirements for covered bonds in EU legislation represents an obstacle for the ECB to further green its collateral framework; calls on the ECB to require climate disclosure for covered bonds in its eligibility framework pending legislative change;
Amendment 273 #
Motion for a resolution
Paragraph 23 a (new)
Paragraph 23 a (new)
23 a. Warns against the Eurosystem over-reliance on external credit rating agencies for climate and environmental risk assessment; Welcomes the ECB’s announcement to further enhance the Eurosystem’s risk assessment tools and capabilities to better include climate and environment related risks, such as through their in-house credit assessment systems; welcomes in particular the ECB’s engagement with rating agencies to increase transparency on how they incorporate climate risks into their ratings and their ambition on disclosure requirements on climate risks;
Amendment 280 #
Motion for a resolution
Paragraph 24
Paragraph 24
24. Regrets that the climate roadmap does not include greening of the ECB’s targeted long-term refinancing operations; stresses that providing cheap liquidity to financial institutions investing in brown activities works against the fight against inflation and is not consistent with the objectives of the Paris Agreement, while offering reduced rates to refinancing operations benefiting renewable energy and energy efficiency would contribute to price stability by reducing risks of a slow and disorderly transition;
Amendment 293 #
Motion for a resolution
Paragraph 25
Paragraph 25
25. Is concerned about the implications of higher interest rates for green investments; stresses that rate rises will likely dis-incentivise new green investments that have large upfront costs and thus face higher funding costs, when compared to fossil fuel alternatives with relatively low upfront costs; calls on the ECB to assess the possibility of applying differentiated rates to support green investments and disincentivise brown investments;
Amendment 294 #
Motion for a resolution
Paragraph 25 a (new)
Paragraph 25 a (new)
25 a. Welcomes the inclusion of climate change and environmental degradation risks in the supervisory priorities for 2022-2024;
Amendment 298 #
Motion for a resolution
Paragraph 26
Paragraph 26
26. Welcomes the ECB climate risk stress test aimed at assessing the climate risk preparedness of the European banking sector; is concerned that the results published on 8 July 2022 show that banks do not have robust climate risk stress- testing frameworks and lack the relevant data; underlines that banks’ losses are lower in an orderly transition scenario than after delayed action; is worried that the estimated credit and market losses in a disorderly transition scenario dangerously underestimate the actual climate-related risk; underlines that two-thirds of banks’ income from non-financial corporate customers stems from greenhouse gas- intensive industries; stresses that risk concentration in the largest systemically essential banks means we could end up at the too-big-to-fail scenario once climate risks start materialising; calls on banks to urgently step up their efforts to measure and manage climate risk; calls on the ECB to use all its available tools to ensure that banks take climate risk seriously;
Amendment 303 #
Motion for a resolution
Paragraph 27
Paragraph 27
27. Stresses the need to further enhance the ECB’s accountability and transparency arrangements; notes that while the ECB has enlarged its toolbox and objectives taken into account alongside inflation, its accountability practices have not evolved; insists on its call for the ECB to take swift action by codifying existing practices and strengthening its accountability framework vis-a-vis the European Parliament, thus ensuring that its independence goes hand in hand with its accountability; suggests that the new accountability framework includes (1) enhanced self-evaluation by the ECB through the conduct of Impact Assessments of different policy options in the annual report, as well as an independent evaluation office modelled after that of the IMF, (2) better involvement of the EP in Governing Council meetings through attendance of the ECON chair, (3) improve access of MEPs to non-public information that inform the decisions of the Governing Council;
Amendment 307 #
Motion for a resolution
Paragraph 27 a (new)
Paragraph 27 a (new)
27 a. Calls on the ECB to publish all of its decisions, in particular decisions on Emergency Liquidity Assistance in distressed member states, as well as positions taken by the ECB in the Basel Committee of Banking Supervision;
Amendment 315 #
Motion for a resolution
Paragraph 28
Paragraph 28
28. Regrets that only two members of the ECB’s Executive Board and Governing Council are women; reiterates that the nominations to the Executive Board should be gender-balanced, with shortlists submitted to Parliament; recalls that Parliament is committed not to consider shortlists that do not respect the gender balance principle, in accordance with its resolution on gender balance in EU economic and monetary affairs nominations; calls on the euro area member states to do their part and fully incorporate the principle of gender equality in their appointment processes for the position of governor of national central banks;
Amendment 316 #
Motion for a resolution
Paragraph 29
Paragraph 29
29. Regrets that the gender imbalance also persists across the organisational structure of the ECB, notably in the share of women in senior management positions, with the share of women in ECB management at 30,3% in 2019, welcomes, the ECB’s new strategy to improve gender balance, including the objective of increasing the share of women to between 40 % and 51 % by 2026;
Amendment 318 #
Motion for a resolution
Paragraph 30
Paragraph 30
30. Takes note of ECB staff rules on potential conflicts of interest and encourages the ambitious application thereof; underlines that the European Ombudsman has opened a case into “revolving doors” at the ECB, after a recent case of a senior economist’s move to an American investment bank; calls on the ECB to extend the cooling-off period foreseen for senior salary tiers also to employees in lower salary bands; calls on the ECB to develop a strategy on how to deal with lobbyists and increase transparency of staff level contacts beyond the Governing Council;
Amendment 323 #
Motion for a resolution
Paragraph 31
Paragraph 31
31. Welcomes the ECB’s progress on the digital euro project, as well as the dialogue with Parliament in this regard; looks forward to the Governing Council reaching a decision on launching the digital euro; is concerned that the ECB has selected Amazon to collaborate in the sensitive phase of developing a prototype and test its integration with the Amazon interface and infrastructure, a company subject to steep EU fines due to data protection violations; regrets that the ECB has not revised its decision despite the concerns expressed by the civil society as well as in the ECON committee during Mr Panetta’s appearance before it on 29 September 2022;
Amendment 330 #
Motion for a resolution
Paragraph 31 a (new)
Paragraph 31 a (new)
31 a. Welcomes the ECB’s support to complete banking union with a European Deposit Insurance Scheme, as a necessary complement to a single monetary policy to ensure financial stability in the euro area;