European Central Bank

HC Deb 30 November 1998 vol 321 cc87-8W

Mr. Malcolm Bruce

To ask the Chancellor of the Exchequer if it is his policy to promote increased transparency in the decision-making processes of the European Central Bank; and if he will make a statement. [61063]

Ms Hewitt

The Government believe that it is vital that the European Central Bank (ECB) is as open and transparent as possible. Transparency is an important factor in ensuring that the ECB gains the trust of the European public and financial markets. Ultimately it will provide the credibility needed to deliver a more effective monetary policy. The Government welcomed the announcement by the ECB on 13 October on elements of their monetary policy strategy which was a useful first step. The Government hope to see further evidence from the ECB of a genuine commitment to openness.

Mr. Malcolm Bruce

To ask the Chancellor of the Exchequer if it is his policy that the European Central Bank should adopt an inflation target; and if he will make a statement. [61064]

Ms Hewitt

In accordance with the Treaty, the primary objective of the ECB is to achieve price stability. The ECB announced on 13 October its intention to base monetary policy decisions on a wide range of economic and financial variables, including a monetary aggregate. This is typical of most central banks, including the Bank of England. The important issue is that the ECB meets it Treaty objective.