Europe could break up in a new financial crisis. Sovereign money would avoid it. Because only such money is money of all citizens.
Hence our demand:
Money creation may only be carried out by the central bank. |
Article 128
(ex Article 106 TEC)
(1) The European Central Bank shall have the exclusive right to authorise the issue of euro banknotes within the Union. The European Central Bank and the national central banks may issue such notes. The banknotes issued by the European Central Bank and the national central banks shall be the only such notes to have the status of legal tender within the Union.
(2) Member States may issue euro coins subject to approval by the European Central Bank of the volume of the issue. The Council, on a proposal from the Commission and after consulting the European Parliament and the European Central Bank, may adopt measures to harmonise the denominations and technical specifications of all coins intended for circulation to the extent necessary to permit their smooth circulation within the Union.
Money creation is the sovereign’s very own right, exercised by the central bank. With the retreat of cash and the advance of book money, the power of money creation passed to the commercial banks. They thus expanded their power and influence and brought the financial and economic system into disarray through reckless speculative transactions. A correction is overdue. It cannot be achieved through more control of the banks or equity capital regulations, but only by the central bank taking over the full scope of money creation again. It must extend its right to create money to book money, which it could put into circulation debt-free. Technically, this is not only possible, but would even modernise and accelerate payment transactions.
With this measure, the monetary system would become much more transparent and harmful speculative transactions would be eliminated. At the same time, new funds would flow into the state. It would also no longer have to rescue the system with gigantic financial injections. The national debt could also be drastically reduced.
The introduction of “sovereign money” would not increase the power of the ECB. This is because the ECB would only decide on the additional money supply, but not on the use of the money.
It is up to the politicians to make a key for the distribution of the money created among the member countries and to regulate the competences between national central banks and the European Central Bank. The money created is to be distributed to the euro countries and should be used there in accordance with parliamentary decisions.
The ECB’s main task should remain focused on price stability. With full control over the money supply, the ECB could enforce its mandate much more effectively than before. In addition, it can support economic policy in the euro area more effectively than before.
The ECB’s new money, the “digital euro”, should be a complement to cash for citizens, but should be settled through accounts. In addition to preserving cash, it is demanded that it be possible to change from the current digital bank money into the new digital central bank euro without restrictions. The new digital money of the ECB is to complement cash. Citizens’ rights to protection of property and privacy must be fully safeguarded. Abuse is to be avoided through appropriate legislation.