The ‘Banking Dialogue’ as a model to improve parliamentary involvement in the Monetary Dialogue?

The newly established European Banking Union has introduced a unique accountability framework of the European Central Bank vis-à-vis the European Parliament (EP), but also vis-à-vis national parliaments, in the form of Banking Dialogue. The ECB was thus far held to account for its monetary policy actions by the EP in the framework of the long-existing Monetary Dialogue. However, some shortcomings have become apparent in this procedure, especially with the economic crisis. Beyond this, the recent attribution of new competences to the ECB calls for a reflection as to the accountability mechanisms in place to control its actions. Based on an empirical and normative analysis of both types of dialogues, we contend that the Banking Dialogue could serve as a model to reform the Monetary Dialogue to enhance the legitimacy of the ECB’s actions and of the EU as a whole.