Ex-Taoiseach hits out at ECB over credit bubbles
Published 08/03/2011 | 05:00
Former Taoiseach John Bruton has criticised the European Central Bank for not using its powers to prevent credit bubbles developing in countries like Ireland and Spain.
John Bruton, the former EU ambassador to Washington, was speaking at a London School of Economics lecture last night.
Mr Bruton said there had been "a strange failure of the ECB" to use its explicit powers to rein in the Irish Central Bank.
He said the Maastricht Treaty gave the ECB a responsibility to keep the monetary policies of member states under review.
While he admitted primary responsibility rested with Irish authorities, Mr Bruton said it was fair to ask if the ECB had considered using its powers when it saw the domestic financial sectors in Ireland and Spain grow disproportionately.