By Paul GOLDSCHMIDT | Former Director at Goldman Sachs International, former Director at the European Commission | Member of the Advisory Board of the Thomas More Institute

When everything else seems to be failing, seeking salvation from the ECB appears a convenient way for politicians to escape responsibility for their dismal handling of the financial crisis.

The message conveyed to the uninformed citizen is that the limitations of the ECB’s interventions are primarily the consequence of its independence, enshrined in the Maastricht Treaty, and therefore “self imposed” by a Board of Governors lacking any political legitimacy. 

By simply calling for the ECB to change its mandate to include “promoting growth” in (...)

By Paul GOLDSCHMIDT, former Director at Goldman Sachs International, former Director at the European Commission, member of the Advisory Board of the Thomas More Institute | Published in French on Atlantico.fr, on April 15th, 2012

No sane observer of the banking scene will contest that remuneration practices, four years into the ongoing financial crisis, remain excessive, if not - in certain specific cases – unquestionably “obscene”.

There can, therefore, be no doubt that a well conceived regulatory framework should be put in place to avoid the justified public outcry whose anger is magnified by the austerity measures to which taxpayers are increasingly subjected. However, this is not the time either for appeasement or to (...)

By Paul GOLDSCHMIDT, former Director at Goldman Sachs International, former Director at the European Commission (1993-2002), member of the Advisory Board of the Thomas More Institute | Published in French on Atlantico.fr, on March 7th, 2012 | Available in French

François Hollande a répété ce dimanche que, s’il est élu, il compte renégocier certains aspects du Traité intergouvernemental signé vendredi dernier à Bruxelles par 25 gouvernements de l’UE. Cette attitude soulève plusieurs questions.

S’agit-t-il d’une simple posture électorale ? Si c’est le cas, et qu’une fois élu, il procède à la ratification, les conséquences seront limitées à une perte de crédibilité. On peut déjà anticiper que les (...)

Article by Paul GOLDSCHMIDT, former Director at Goldman Sachs International, former Director at the European Commission (1993-2002), member of the Advisory Board of the Thomas More Institute | Published in French on Atlantico.fr, on 21th February, 2012

France should be the first country to adopt legislation covering the creation of the ESM. It will, however, only become operational after ratification of the Intergovernmental Treaty (EU 25) on budget discipline which should be signed early next March. Indeed, access to the ESM is subject to the ratification by the applicant of the Treaty which will only enter into force after its adoption by at least 12 of the 17 EMU Member States. This can only be envisaged for the end of the (...)

By Paul GOLDSCHMIDT, former Director at Goldman Sachs International, former Director at the European Commission (1993-2002), member of the Advisory Board of the Thomas More Institute.

When Philippe Maystadt or Michel Rocard recommend that the ECB consider loans to Eurozone Governments, it is necessary to examine carefully such proposals. Indeed, the increasing role of the ECB in the management of the financial crisis raises questions concerning the appropriateness of its mandate and the limits imposed on its interventions.

Initiated already under the presidency of Jean-Claude Trichet, through both standard and non-standard measures of implementing monetary policy, the interventions of the ECB have gathered momentum (...)