New features of the European Central Bank in the economic governanace of the European Union: how it affects its democratic deficit

In July 2007, the collapse of the investment bank Lehman Brothers in the USA, in addition to the announce of the deep economic crisis that we suffer for more than seven years, revealed the apparent inability of the existing supervisory and regulation systems to prevent, control and manage the effects of systemic risk in an increasingly global world. The creation in 2008 of the Financial Stability Board (FSB) by the G20 detected two problems which constitute the basis of the subsequent renewal of the global financial system. First, a need for a close coordination among states (to prevent risks) and second, the urgency to design the tools that are necessary to control the effects of the global crisis. Considering both circumstances, we are trying to rebuild the financial system focusing in re-establishing a supervisory and regulatory system with three main objectives: to create transparency, increase the solvency of financial institutions and create effective protection, especially at small investor. In this international context, the relevance of the EU as a participant member of that renewed global financial system is crucial, despite the loss of power that the EU has suffered after the global economic crisis. Since 2008, the EU becomes aware of the effects of not having effective and coherent economic governance, and the need for greater coordination of economic policy. As we know, the EU pre-crisis economic policy was mainly based on consensus, non mandatory standards, except in the context of budgetary policy, which was defined in the context of the Stability and Growth Pact (SGP).