Will the ECB carry on bullying governments into doing what it wants?

The central bank sees the merit of the carrot and the stick. Democracy? Not so much.

The European Central Bank announces its next monetary policy decision at 1:30pm today, and here's hoping it's a good one.

The eurozone is by no means fixed, and as Alphaville's Izabella Kaminska points out:

The ECB’s accomodative policy has failed to make an impact due to a broken transmission mechanism. Under its own mandates, this leaves the ECB open to the use of unconventional tactics to get it going again.

What sort of unconventional tactics? Well, the expected plan looks to be to begin primary debt purchases – the ECB will start to buy debt directly from the European Stability Mechanism (the organisation in charge of the eurozone bailouts).

But the really worrying possibility in today's announcement is highlighted by Slate's Matt Yglesias:

Here's Philipp Rösler, Vice-Chancellor of Germany and Economy Minister, offering the clearest account yet of how European monetary policy has gone so far off the rails:

“If you take away the interest rate pressure on individual states, you also take away the pressure for them to reform.”

The view here is that because countries ought to pursue good pro-growth structural policies, central banks ought to create unfavorable monetary conditions as a way of pressuring countries to pursue structural reforms.

Yglesias points out that this tactic makes it impossible to tell which structural reforms have actually worked, but the other massively damaging aspect is what it does to the democratic legitimacy of the Bank. They are using their one tool, not to improve the economy of the eurozone, but to cajole elected governments into doing things they wouldn't do otherwise. It's the sort of thing that makes a person take Nigel Farage seriously.

Protesters camp outside the ECB in Frankfurt in October 2011. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Jeremy Corbyn's Labour conference speech shows how he's grown

The leader's confident address will have impressed even his fiercest foes. 

It is not just Jeremy Corbyn’s mandate that has been improved by his re-election. The Labour leader’s conference speech was, by some distance, the best he has delivered. He spoke with far greater confidence, clarity and energy than previously. From its self-deprecating opening onwards ("Virgin Trains assure me there are 800 empty seats") we saw a leader improved in almost every respect. 

Even Corbyn’s firecest foes will have found less to take issue with than they may have anticipated. He avoided picking a fight on Trident (unlike last year), delivered his most forceful condemnation of anti-Semitism (“an evil”) and, with the exception of the Iraq war, avoided attacks on New Labour’s record. The video which preceded his arrival, and highlighted achievements from the Blair-Brown years, was another olive branch. But deselection, which Corbyn again refused to denounce, will remain a running sore (MPs alleged that Hillsborough campaigner Sheila Coleman, who introduced Corbyn, is seeking to deselect Louise Ellman and backed the rival TUSC last May).

Corbyn is frequently charged with lacking policies. But his lengthy address contained several new ones: the removal of the cap on council borrowing (allowing an extra 60,000 houses to be built), a ban on arms sales to abusive regimes and an arts pupil premium in every primary school.

On policy, Corbyn frequently resembles Ed Miliband in his more radical moments, unrestrained by Ed Balls and other shadow cabinet members. He promised £500bn of infrastructure investment (spread over a decade with £150bn from the private sector), “a real living wage”, the renationalisation of the railways, rent controls and a ban on zero-hours contracts.

Labour’s greatest divisions are not over policy but rules, strategy and culture. Corbyn’s opponents will charge him with doing far too little to appeal to the unconverted - Conservative voters most of all. But he spoke with greater conviction than before of preparing for a general election (acknowledging that Labour faced an arithmetical “mountain”) and successfully delivered the attack lines he has often shunned.

“Even Theresa May gets it, that people want change,” he said. “That’s why she stood on the steps of Downing Street and talked about the inequalities and burning injustices in today’s Britain. She promised a country: ‘that works not for a privileged few but for every one of us’. But even if she manages to talk the talk, she can’t walk the walk. This isn’t a new government, it’s David Cameron’s government repackaged with progressive slogans but with a new harsh right-wing edge, taking the country backwards and dithering before the historic challenges of Brexit.”

After a second landslide victory, Corbyn is, for now, unassailable. Many MPs, having voted no confidence in him, will never serve on the frontbench. But an increasing number, recognising Corbyn’s immovability, speak once again of seeking to “make it work”. For all the ructions of this summer, Corbyn’s speech will have helped to persuade them that they can.

George Eaton is political editor of the New Statesman.