The European central bank (ECB) has opted for ignore the decision of the German Constitutionalwhat has knocked down the massive purchase of debt of community countries which started in 2015 under the presidency of Mario Draghi. As the ECB President has indicated, Christine Lagarde, the institution will continue acting “without flinching” and will continue to do “everything necessary”.
Lagarde justifies this position because the ECB is an independent institution which is accountable to the European Parliament and is subject to the jurisdiction of the Court of Justice of the European Union (CJEU), but also to the fulfillment of its mandate: “Central banks, including the ECB, are guided by their mandate, therefore that we will do everything necessary to fulfill it ”.
This was stated by Lagarde during his participation in an event organized by Bloomberg, adding, when questioned about the opinion of the German Constitutional Court. The French insisted that the ECB “is an independent institution that is accountable to the European Parliament and that it is guided by its mandate”, for which she stated that the institution “will continue to do what is necessary” to fulfill it.
“Our mandate dictates that we do everything necessary and everything that is necessary to fulfill our purpose,” said Lagarde, underlining the exceptional circumstances and unprecedented ‘shock’ that the world economy and the eurozone are currently going through, making it clearly necessary to go beyond normal and conventional tools.
In this sense, Lagarde has defended that, in such circumstances, the central bank must design and calibrate the appropriate level of deviation to have the margin of maneuver to fulfill its mandate and thus avoiding unwanted tightening of financing conditions and ensure that monetary policy is transmitted to all regions of the eurozone.
“That’s what we need to do, what in fact we are doing and what we are going to continue doing “, Lagarde has sentenced.
In this way, the President of the ECB has ensured that the tools, calibration, proportionality and evaluation will go depending on what the circumstances dictate. “And we will continue to do so without flinching,” he concluded.