Former ECB president Mario Draghi
claimed last year that the majority in favour of further loosening was so large
that it was unnecessary even to count the votes. Never mind that the
countries opposing the decision hold 56% of the ECB’s paid-in equity
capital and account for 60% of eurozone output.
Counting their compatriots on the ECB governing council, however, they
have only seven out of 25 potential votes (subject to a rotating
limitation). Draghi did have a majority, then, but it represented a very
clear minority of the ECB’s liable capital. This raises considerable
concerns about the governing council’s decision-making process.
Todays head of the ECB Christine Lagarde has warned that the eurozone could be on course for a 15% collapse in output in the second quarter as evidence of the economic toll caused by Covid-19 pandemic started to emerge, with France and Italy falling into recession.
After news that the 19-nation monetary union area had contracted a record 3.8% in the first three months of 2020, Christine Lagarde said much worse was possible in the April to June period, when the impact of lockdown restrictions would be most severe.
Todays head of the ECB Christine Lagarde has warned that the eurozone could be on course for a 15% collapse in output in the second quarter as evidence of the economic toll caused by Covid-19 pandemic started to emerge, with France and Italy falling into recession.
After news that the 19-nation monetary union area had contracted a record 3.8% in the first three months of 2020, Christine Lagarde said much worse was possible in the April to June period, when the impact of lockdown restrictions would be most severe.
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