ECB accountability under the SSM: New dimensions of political and administrative accountability with particular focus on climate risks

The Single Supervisory Mechanism (SSM) is a relatively recent and remarkable piece of institutional architecture at the core of the Banking Union. The vast powers conferred on the ECB under the SSM, the complexity of coordination and the sensitive nature of some decisions allocated to the EU level make accountability a key requisite for the system’s success. Some of the provisions applicable provide a solid foundation for a system of strong accountability. Recently, the need to offer a credible response to climate change risks have added additional challenges to ECB accountability under the SSM. Accordingly, there is room to improve the system to effectively counterbalance the powers given to the SSM to increase their accountability at the European level without undermining their independence and within the boundaries of the current legal framework.