Call for probe into ECB’s role rejected

CALLS for an investigation into the European Central Bank’s alleged role in helping fuel Ireland’s banking crisis with cheap credit have been rejected by sources close to the bank.

Two government ministers this week said the ECB had a role to play in facilitating Ireland’s banking crisis and that any bank inquiry needed to take account of this.

But sources close to the ECB yesterday said the allegation was “absolute nonsense” and that it was unlikely Frankfurt, where the bank is based, would cooperate with any Irish inquiry. “The framework for the monetary union is the same for all countries. If the allegation is that we did one thing with one country, that doesn’t make sense as it is a single currency for all 17 euro members. The monetary policy is a single policy. All policies are directed to all [countries] and cannot take into account national factors. It’s impossible to allege this. It’s absolutely nonsense. You can’t have just one rate for Ireland, it’s the same for all countries,” said the source.