• Statement of the GUE/NGL
  • 8 good reasons why Lagarde’s not fit for the ECB

  • 17 Sep 19 Posted under: Economic Governance , Ευρωπαϊκή Ένωση
  • Before today’s vote on Christine Lagarde’s nomination as head of the European Central Bank, we offer you eight good reasons why she is unsuitable for the post.


    By snubbing the Parliament’s vote on her own appointment, Lagarde has shown massive disrespect for citizens and democracy.

    If she cannot be bothered, why should anyone approve her mandate?



    As IMF chief, Christine Lagarde’s monetary policy directly contributed to rising inequality around the world. By pumping hundreds of billions of dollars into the world’s financial markets through quantitative easing, she enriched financiers and speculators – not citizens.

    Barely a fraction was set aside to help out businesses and households. And with weak economic growth forecast in the near future, the real economy will gain few benefits. Rising inequality over the past ten years will just increase further under Lagarde.

    Indeed, she was evasive on questions about dangers to the economy from years of monetary stimulus and low interest rates just a few weeks ago…



    “Climate change is one of the most pressing global challenges facing society today.” – Lagarde wrote in August 2019.

    But what concrete measures and incentives will Lagarde implement as part of her ‘green’ drive and the European Green Deal?

    Every part of our society would need funding to help with just transition if we are to tackle the climate emergency. Yet, 63% of ECB purchases of private debt benefitted some of the biggest polluters in the world. Plus, the ECB has a track record of only letting the markets decide, with no environmental criteria being considered.

    Does Christine Lagarde look the type who will make that change?!



    From the Greek depression to austerity across Europe, as well as Cyprus’s deposit insurance chaos, Lagarde’s name is intimately linked to almost every so-called “economic adjustment” inflicted upon people around the world over the past seven years.

    By acting on behalf of right-wing politicians and major banks, she forced through untenable debt repayment programmes on Greece during the financial crisis. As part of the Troika (IMF, ECB and European Commission), Lagarde sided with the creditors, and was instrumental in the blackmailing, bullying and threats on the Greek government.

    Her painful legacy is plain to see. Her actions have devastated Greek society, decimated public services, privatised pension systems and national assets. Inexcusably, she also chose to demonise the Greek nation.

    When once asked if she had any sympathy for the people of Greece, Lagarde said:
    As far as Athens is concerned, I think about all those people who are trying to escape tax all the time…



    From France to Argentina via Africa and Europe…the IMF under Lagarde has left a trail of destruction.

    She signed off as France’s finance minister with a devastating budget deficit for the country. She subjected Greece to the worst ever recession and now, she leaves the IMF by leaving Argentina in financial chaos. The IMF’s $57 billion bailout of Argentina in 2018 under her watch has left the country in economic meltdown. The Argentine bailout was the largest in IMF history and Lagarde knew of the risks…but forged ahead with them anyway.

    As the saying goes, “once is unfortunate, twice is careless, thrice is just….unacceptable incompetence”



    Lagarde was convicted of negligence over her role in a controversial €404m payment to a businessman when she was France’s finance minister back in 2008. She was tried in court in 2016 but went unpunished in spite of the conviction due to the “financial crisis, her good reputation and international standing”.

    Her defence?

    “I receive between 8000 and 9000 notes per year…so could not stay on top of the brief…”.

    Negligent or incompetent…or both?!

    So, no sentence, the €15,000 fine waived, and no criminal records either.

    Plus she also got to stay in her job…as head of the IMF…and now as the president of the ECB.

    A cosy revolving door? You bet!



    In accepting the 2018 World Leader Award from the Appeal of Conscience Foundation (along with Henry Kissinger), Christine Lagarde tweeted that ‘democracy & human rights are the fundamental values that give nations their best hope for peace & prosperity’.

    Yet, from Egypt to Brazil, Spain to Africa, the IMF under Lagarde has been all about enforcing austerity programmes that have had serious impacts on human rights. Many of the draconian measures had been imposed by the IMF without democratic mandates or consultations with affected citizens and NGOs.

    As a result, public services and investments are sacrificed and living conditions continue to suffer.

    Does this ‘world leader’ have a ‘conscience’?



    By supporting the deregulation of the financial system DURING the financial crisis, she is setting the stage for the impending financial crisis that could affect us all in 2020 and beyond….


    originally published at the website of the GUE/NGL;

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