The European Central Bank (ECB) is facing internal criticism from its own staff amid growing tensions over governance, labour rights, and internal representation. In a formal letter addressed to ECB President Christine Lagarde, members of the bank’s staff committee accused the institution of operating as an “unaccountable legal fortress” and disregarding democratic standards and the rule of law.
The strongly worded letter, seen by the Financial Times, was penned by Carlos Bowles, Chair of the ECB’s Staff Committee, and comes amid an escalating dispute over proposed changes to the role of the bank’s works council, a group of elected employee representatives.
Allegations of Anti-Democratic Practices
In the four-page letter, Bowles criticized what he described as “anti-democratic” behavior within the bank’s leadership, claiming it stood in stark contrast to the rule-of-law values that Lagarde has publicly championed as a core strength of European institutions.
“We regret to see that these principles expressed outside the institution seem to be given little value inside the institution by its power structure,” Bowles wrote.
The dispute centers on a proposal by the ECB to require elected staff representatives to divide their time between council duties and their original job roles. This would depart from current practice in Germany, where labour laws allow representatives to work full-time on staff advocacy while retaining their normal salaries — a right that has been legally protected in German labour legislation for over a century.
However, as an extraterritorial EU institution, the ECB is not bound by German labour law or similar national regulations. Bowles argues this legal autonomy enables the ECB to operate without accountability, especially in employment matters.
Staff Burnout, Favoritism, and Temporary Contracts
Beyond the legal issues, the letter cites a wider decline in staff morale. It references widespread complaints of favoritism, high rates of burnout, and the precarious status of employees working under temporary contracts. The internal atmosphere, according to Bowles, is becoming increasingly toxic.
A survey conducted earlier this year by staff union Ipso found that 77% of roughly 1,400 ECB employees surveyed believed “knowing the right people” was more important for career advancement than merit or competence. Only 19% felt the ECB promoted the most qualified individuals.
Concerns Over Independence and Silencing Dissent
Bowles also warned that the ECB’s internal structure places it in the unusual position of being both “employer and legislator”, thereby diminishing staff members’ ability to express independent expert views without fear of repercussions.
He went further, accusing the institution of using its power to “undermine and even silence” the staff representation body — the only formal counterbalance to the administration’s authority within the ECB.
ECB Responds: We Operate Within EU Legal Standards
In a response, the ECB defended its actions, stating:
“We are firmly committed to the rule of law and operate within a clear employment framework that is closely aligned with EU Staff Regulations and is subject to European Court of Justice scrutiny.”
The ECB added that it has won the majority of legal challenges to its employment policies and said the proposed changes — scheduled for mid-2026 — are aimed at helping staff representatives maintain their professional development and remain connected to the institution’s public mandate.
Calls for Lagarde to Reconsider
Earlier this year, top officials from the European Public Service Union (EPSU) and Germany’s Verdi union also urged Lagarde in a joint letter to abandon the proposed restructuring, warning that it could damage staff rights and undermine democratic values within the institution.
The episode highlights a deeper challenge facing the ECB: how to reconcile its unique legal status and centralized governance with the expectations of democratic accountability and fair labor practices — particularly in a region where such protections are a foundational element of public life.
