A key minister in Giorgia Meloni’s right-wing administration has called into question the legitimacy of the European Central Bank’s independence from national governments and European Union authorities.
(Bloomberg) — A key minister in Giorgia Meloni’s right-wing administration has called into question the legitimacy of the European Central Bank’s independence from national governments and European Union authorities.
“We have relinquished to independent bodies that are accountable only to themselves the possibility of shaping the lives of citizens and the economy, with more power than the European Commission and, most importantly, than national governments,” Defense Minister Guido Crosetto told newspaper La Repubblica on Wednesday. “Is it legitimate to ask whether this is right?”
Italian government officials have ramped up their attacks on the central bank since December, when the ECB announced that it would keep increasing rates well into 2023 and start shrinking its balance sheet. Meloni said in her year-end press conference that it would be “advisable” for the ECB “to avoid detrimental choices.”
Read More: Italian Ministers Step Up ECB Criticism, Warn of Credit Crunch
The criticism is not limited to the government. The head of Italy’s banking lobby said earlier this week that the ECB should reconsider its plan to raise borrowing costs again.
Crosetto, a close Meloni ally, said that while the decision to raise rates is “understandable” in the face of high inflation, ending net purchases of government bonds is “more difficult to understand and justify.” He added that market reaction to ECB policy moves shows that the central bank’s transmission protection instrument is “not enough.”
Italy must refinance around €260 billion ($275 billion) of maturing debt in 2023, on top of new issuance of around €90 billion, according to UniCredit SpA.
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