ECB President, Mario Draghi, today answered questions in the European Parliament’s ECON committee on the circumstances that led to the Irish bailout. Brian Hayes MEP who questioned the ECB President commented that ECB actions ultimately made the bailout situation worse for Ireland.
“The engagement with President Draghi at the ECON Committee this morning was not satisfactory. There was virtually no scrutiny on the issues that remain for Ireland about the role of the ECB.
“To suggest that the total responsibility for this crisis was home grown, as Mario Draghi said today, is unfair and a gross distortion on what happened. Yes the lack of Irish banking and supervisory controls were ultimately responsible for Ireland’s collapse, but the actions of the ECB made the situation much worse. Their failure to allow write down of unsecured and unguaranteed creditors on two separate occasions, was a terrible mistake and a mistake that needs to be recognised now”.