A report on the performance of the European Central Bank in 2008, penned by Labour MEP Edward Scicluna, was yesterday unanimously adopted by the European Parliament in Brussels.

In his resolution on the report, Prof. Scicluna questioned whether the ECB was aggressive enough in cutting interest rates in response to the financial crisis and stressed that the extra liquidity injected might not have reached small and medium-sized enterprises but instead had been used by some banks to improve their margins and cover losses.

On the post-crisis measures taken by the ECB, the resolution warned the Bank not to overreact to inflation risks so as not to kill off any green shoots of recovery.

It appealed for more help for non-euro member states and asked the ECB to present its views on setting up a clearing house for credit default swaps within the eurozone.

In his reply, ECB president Jean-Claude Trichet said that European central clearing would be essential and that regulators should be able to investigate suspicious speculative behavior.