Domestic cost developments, as captured by unit labour costs, play a key role in determining competitiveness. Unit labour costs, which correspond to the ratio of compensation per employee over labour productivity, reflect wage developments in comparison to productivity dynamics.
After all, the democratic legitimacy of the ECB has been safeguarded in many ways. For example, the designated ECB-President can be questioned by the European Parliament and the chairman of the Council of Ministers plus a member of the European Commission may participate in meetings of the ECB Executive Board without, it is true, voting rights.