EESC info European Economic and Social Committee a bridge between Europe and organised civil society Europe’s Monetary Policy must have sharper focus By Carlos Trias Pint6, EESC member and President of the Consultative Commission on Industrial Change (CCM) and Adrian Zelaia, CCMI delegate HP) We should notforget tat atheugh monetary xperion 'b implemented by ‘chanweling Higley ino she baning system, hiss ust an Intermedia step on the rad 0 Ut tates, ich into impact he supe and demand of money Thi can ony be aeheved when the banks aly gear ther resources to What this meansisthatmonetay exparsions tn ecient fthece meoures Seay reach the eal economy, and ot they remain pled tp in nancial ents are used for specular Eurozene And tie te poccaly the problem with our ‘monetary polices: there is na guarantee that the resourees hat are pumpedintothebank- ing sstem wil actualy reach the real eo tomy. On the contrary iis an incontovert ible fact that «huge proportion of monetary fexpamion fs use for crit inthe real economy. The atest Eso Aves Sank Lending Survey, ari out bythe ECB in July ofthis year, tevealed that according to the banks themselves, esoures tom long-term mon- tary exparsenoperaions are being wed 19 ‘Tm European Ecoromic and Socal Com- provcecreditn only 59% of cases, whereas mittee (ESC) naslaunched a project on Euro- the banks ae using nearly 28% to refnance ‘Bean industry and menetarypolicy: Tne role their franca lables. ‘ofthe European Ivesment Benk, whith alms To eaplore the nds o polices that oxght to Monesary expansion is insficentl focused, be pusued inorder toimprove the eflency in ather words the huge suns chamelled ‘ef menetary pally ination thera pro-_through monetary expansion a pouted nto ‘duce econemy, The theory behind the pro- the benkng system without aty Kind ef ro Jectisthat cooperation between the European vio to ensure they at used ‘0 achiee the ‘Cenyal Bank and the Euopean Investment aims the monetary poly ise Bank could pove 2 well tot for achieving this am The inefficiency and the huge waste of Tesoures that thie station eta ar aby Ie worth bearing In mind the Institutional ous and. shouldbe quity adéeeeed by ‘nd politcal difficulties thatthe Eyopean the European institutons In our opinion, Union faced when it launched the Invest cooperation between the European tment Pin for Europe (he socalled luncker Central Bank and the European iavest- Pra fr wach EUR 21000 millon robe ment Bank, whichis mainly responsible cearmaited over the cause of thee years At for Investment policy in the Eurepean the ine tire, the fuopeat Cental Sonk Union, would be of enormous value it has setup an l-month monetary expansion addressing this issue. ‘progam fer 2“isimum™ overall amount CEU 4 thon, amos $5"mes more. ICs Gear why this ceoperaion Is of inter ‘he fact that both ‘programmes have been est. The EB has the necessary know-how to launched atthe sametume sled bushesses, determine which investments the European happening. Are not both cases amatter of them, and how to sructure them. It has Public resources intendedfor the Eura- more than erough experience in channel and iguiity °