ECB offers banking inquiry chance for ‘exchange of views’

The European Central Bank has resolved to take part in “an informal exchange of views” with the Oireachtas on the banking crash but only if the engagement takes place outside the ongoing inquiry into the debacle.

Although the ECB signalled on Tuesday that its deputy president Vítor Constâncio now “stands ready” to represent the bank in an exchange with a committee or committees of the Irish parliament, there is no agreement with Dublin on procedures or practical arrangements.

Mr Constâncio, former governor of the Portuguese central bank, has been deputy chief of the ECB since 2010, the year Ireland entered the EU-IMF bailout programme.

In a letter to Independent MEP Marian Harkin, ECB chief Mario Draghi reiterated that the bank will not participate in the formal inquiry as it is primarily held to account by the European Parliament.

He went on to say, however, that the bank could “in line with past practice” take part in an informal exchange. Mr Constâncio was “the longest-serving” member of the ECB executive board, added Mr Draghi.

Offer of assistance

The development follows a personal intervention by Taoiseach Enda Kenny with Mr Draghi over the ECB’s refusal to take part in the inquiry.

Inquiry chairman Ciarán Lynch welcomed the ECB’s offer of assistance but said it still wants to hear directly from Jean-Claude Trichet, ECB chief at the outset of the bailout.

“The committee will examine the response from Mr Draghi and the ECB. At this point I think it should be be looked at as being in addition, and separate, to the process the committee has opened up in regard to meeting Mr Trichet,” said Mr Lynch.

Ms Harkin, who organised a letter to Mr Draghi from Irish MEPs, said the engagement with the bank should not take place behind closed doors. “The key issue will be how the banking inquiry engages with the ECB on an informal basis.”