Communication failure
The majority of people in the eurozone trust the European Central Bank (ECB) at least to some extent. So far, so good for the central bank, for which trust is an important currency in monetary policy. However, the ECB should be concerned that around one in eight people think so poorly of it that they give it the lowest possible score on a scale of 0 to 10, according to its own survey.
And all supporters of democracy should be concerned that the situation is no better for other public institutions. A section of the population has nothing but contempt for the ECB, EU institutions or the national government. These people feel that these bodies do not take them seriously, or even lie to them. It is therefore hardly surprising that many of them are turning to populist parties - mostly on the right. It is extremely dangerous for a democracy if trust in its institutions erodes among a significant proportion of society.
Too little knowledge
Counteraction, and the slow rebuilding of trust, is therefore immensely important. But how can this be achieved? There is no single answer to this question. However, the ECB's research paper provides a possible building block. People with little to no financial knowledge are more inclined not to trust the ECB at all or, on the contrary, to trust it completely.
The explanation for this is probably that, due to their lack of knowledge, these people simply imagine what the ECB's tasks are, and whether it fulfils them well or badly. A nuanced view of the central bank's work requires knowledge.
Better communication needed
The fact that financial knowledge in Germany is pretty poor is largely due to education policy. The subject is taught too little, or not at all, in many schools. A reform of the curriculum is urgently needed, and not just in this area.
However, imparting knowledge is not just the task of schools, training centres or universities. Institutions such as the ECB must also seek dialogue with the population. It is good that the ECB wants to promote „clear and effective communication“. However, it is important that this communication manages to reach groups of people that do not trust it at all. Not an easy task.
