This is BS of course "Mr Weidmann said such a move would contradict the principle of market neutrality that is enshrined in EU law." ft.com/content/60d983… @OlafStorbeck @MAmdorsky /1
The term “market neutrality” is not from the Treaty but rather a very recent addition to ECB vocabulary. In fact, in a 2008 paper ECB officials explicitly deny that its operations are “market neutral”. ecb.europa.eu/pub/pdf/scpops…
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The @ecb mandate contains two passages that might mistakenly be taken to imply the Weidman's radical neoliberal notion of neutrality. One is a uniquely vague passages about acting “in accordance with the principle of an open market economy” (TFEU 119) /3
The second is Article 124 which prohibits ““any measure, not based on prudential considerations, establishing privileged access […] to financial institutions” but, as @DanielaGabor just pointed out, climate risks are prudential risks if anything is. /4
Moreover, as @pdegrauwe already mentioned, the Statutes explicitly assign environmental objectives to the ECB /5
Also note the Article 11 TFEU "Environmental protection requirements must be integrated into the definition and implementation of the Union's policies and activities, in particular with a view to promoting sustainable development.", dug up by @PositiveMoneyEU & @JavierSolana8
In sum, the @bundesbank should be ashamed of itself, and the @FT should call out fake news dinosaur Jens Weidmann’s claim instead of merely reporting it. /7
For more on the Myth of Market Neutrality and the cynical uses that the ECB puts it to see and my deo volente almost finished book-length borefest The Politics of ECB Risk Management. /end
