Accountability and diversity in central banking
Central banks are financial powerhouses, and they are rightly independent of elected governments to keep our economy stable. But this independence doesn't give them a free pass. When their decisions affect everything from the cost of your groceries to employment rates, they have a duty to serve the wider social needs of the public.
If power operates in isolation, it risks neglecting the needs of ordinary families and businesses.
The ECB wields immense financial power, but its actions — from setting interest rates to buying bonds — have profound, unequal consequences on millions of citizens. Historically, the insistence on 'technocracy' has helped justify entrusting this power to a small circle of "experts", often protecting established financial interests over social stability.
What we do for fairer central banking
We want to ensure Europe’s financial system works for the many, not the wealthy few. We demand democratic oversight and structural diversity at the highest levels of economic decision-making.
We specifically scrutinize the European Parliament’s legislative file that takes an in-depth look at the ECB’s activities in the last 12 months: the European Parliament’s resolution on the ECB Annual Report.
We monitor this process closely, double-checking all amendments and working with policymakers to ensure they are aware of all the implications of their vote and advocating for more responsible and sustainable actions from the ECB.
This way, we aim to ensure the ECB actively tackles inequality, high living costs, and the climate crisis – all part of the ECB’s legal secondary mandate to support the EU's goals.
Do we have an accountability deficit?
The current system allows powerful central banks to operate with insufficient democratic control.
The European Parliament, the only elected body with oversight, has limited tools to be a ‘watchdog’ to the operations of the ECB and other central banks in the Eurozone.
As said, the main mechanism is the annual Resolution on the ECB’s work, which we monitor to ensure that it doesn't become a merely theoretical exercise. There are also the 'monetary dialogues' with the ECB President, but these are often seen as too limited to enforce real, point-by-point accountability.
Key positions on the ECB Executive Board are effectively nominated behind closed doors by national governments and the European Council. The Parliament only has a consultative role. This process lacks the transparency and democratic input required for such pivotal public roles.
The diversity and competence trap
The EU economic system currently drives social inequalities and debt crises, often favouring private banks and big corporations. While various economic factors contribute to this, the issue is undoubtedly worsened by the lack of diversity within the institutions that hold economic power.
Europe's money shouldn't be run by a narrow and unrepresentative group. The numbers are clear:
Since its inception in 1998, only five women have served on the ECB’s Executive Board.
As of late 2025, euro-area central bank governors and most top officials are white, middle-aged men.
The current ECB's Executive Board has just 2 women out of 6 members.
National diversity is also strikingly limited: ECB presidents have come from only three countries – the Netherlands, France, and Italy – despite representing a monetary union of 21 Member States.
This lack of diverse voices is not just a fairness issue; it’s a competence deficit. It creates dangerous blind spots in policy design, risking that policies will inevitably fail to address the needs of vast sections of society – from low-income households to marginalised communities and peripheral economies – allowing inequality to persist and undermining the legitimacy and effectiveness of Europe’s economic governance.
We demand a responsible, diverse Central Bank
To secure a more resilient and fair economy for every European, we need to reform the foundations of central bank governance. Independence must be matched by equally strong democratic oversight. This can be reached by these concrete, feasible steps:
1. Fulfilling the full mandate
The ECB’s primary job is price stability. But its secondary, legal mandate is to support the EU's general objectives, including social welfare and environmental protection.
The ECB cannot fulfill its primary mandate if it ignores major, non-traditional drivers of inflation, such as climate change and fossil-fuel shocks. These are core risks.
The ECB must also move beyond the outdated concept of "market neutrality" – the idea that its interventions should mirror existing market structures. In practice, this approach reinforces the bias toward high-carbon, fossil-fuel industries. The ECB must integrate strong climate and nature criteria into its operations to support, not undermine, the path to a livable future for all of us.
2. More diversity
A lack of diversity in leadership stems from a flawed appointment process. These need to be structurally fixed.
Appointment procedures at the ECB and national central banks must be urgently reformed to establish a balanced pool of diverse candidates for every senior position. We need different voices represented in the Eurozone.
This refers to true diversity – across perspectives, gender, income, ethnicity, and class. All of these are essential for shaping policies that reflect real lives and real needs.
Want an example? With four of the six Executive Board seats rotating by the end of 2027, this is the most critical opportunity in a decade to ensure women’s presence and broader diversity are made a structural priority, not just an optional encouragement.
Also, the ECB should strengthen its engagement with civil society meetings and consultations. It should also engage in initiatives to directly listen to people’s demands and consider deliberative processes bringing representative samples of the public directly into the decision-making process.
