Trichet’s rate increase is nail in coffin for PIGS economies

Fictitious ‘independence’ of ECB needs to be replaced by democratic control

Fictitious ‘independence’ of ECB needs to be replaced by democratic control

The European Central Bank’s decision to increase interest rates by 0.25% will have devastating consequences for mortgage holders across Ireland. For many, this extra €500 a year or more will be the straw that breaks the camel’s back and can leave them facing eviction.

Jean-Claude Trichet’s announcment. is also a further nail in the coffin of economies like Greece, Ireland and Portugal which are in need of low interest rates to assist in stimulating economic growth. It also has the potential to ignite the smouldering massive Spanish housing crisis, which in turn can result in Spain completing the quartet of so-called PIGS countries hurling towards default.

The ECB’s ‘independence’ is something that is much trumpeted by right-wing economists. This latest rate increase underlines the fact that this independence is purely fictitious and ECB policy is being determined by the interests of the capitalist class in the so-called ‘core’ Euro countries, like Germany. The trade union movement and Left across Europe must campaign to bring the ECB under democratic control with monetary policy being implemented in the interests of working people across Europe.

 

Total
0
Shares
Previous Article

Special needs assistants: Campaign grows to fight cruel cuts

Next Article

The ULA Forum – a reply to the SWP

Related Posts
Read More

Olympics 2012: London – a tale of two cities

The Olympics will be staged in London this summer. The Con-Dems and their big business friends expect that the Games and the Queen’s Golden Jubilee in June will bring tourists, consumer spending and profits. But perhaps most importantly, they hope they will deflect the attention of London’s working and middle class from the severe austerity and economic meltdown that will actually be the main features of London in 2012. They are hoping to emulate the policy of the Ancient Roman emperors to keep the masses in check.