The European Central Bank (ECB), as expected, did not change interest rates during Thursday's monetary policy meeting, holding it steady at 0.05 percent. Here, what was important was how ECB President Mario Draghi would resist Germany's attempts to stave off the ECB's monetary expansion policy. Despite showing his commitment to monetary expansion during a press conference held after the meeting, Draghi has yet to convince, as what Europe needs to tackle problems is the stability of institutions rather than individual determination. The current structure of the EU's institutions, including the ECB, is not enough to overcome crisis that is being experienced now.Exercising large dominance over all critical institutions of the EU, including the European Commission and ECB, Germany overtly stands against government bond purchases, which is the basis of monetary expansion policy. On the sidelines of a press conference last month, Draghi vowed that he would increase inflation as rapidly as possible; however, he was unable to take steps to this end, with the ECB failing to switch to Quantitative Easing (QE) policy, like the U.S. Federal Reserve. The most important reason for this is that the ECB put off government bond purchases, despite taking the vital step toward monetary expansion. Sabine Lautenschlager, a German member of the Executive Board of the ECB, was the most unyielding figure who strongly opposed government bond purchases last week. The purchase of government securities, including bonds, will cause downward pressure on borrowing costs in order to fund national budgets, and this will stimulate borrowing, Lautenschlager said. What the ECB should do at this point is creating useable euro liquidity and bringing down borrowing costs by increasing balance sheets rapidly. Draghi and his team are not powerful enough to govern the ECB and practice its strategies, revealing that the ECB is not independent and there is a greater problem in the EU, going beyond the ECB staff. It is an indisputable fact that the ECB is one of the biggest institutions in the EU, but it does not pursue an independent monetary policy that will observe the common interests of the whole eurozone while seeking ways of overcoming crisis. Germany, which treats the ECB as if it were its own central bank, opposes this idea fiercely.The recent G20 Leaders' Summit held in Australia opened two basic topics up for discussion regarding economic policies. The first one is the traditional neo-liberal monetary and fiscal policies, while the other is policies that will put forward comprehensive public regulations as an alternative to these policies. Germany has always supported neo-liberal policies which are based on financial stability and nourished by tight monetary and fiscal policies. However, it has been proved by Europe and many countries in the world, both in theory and practice, that this way is a dead end for the EU.Following the Great Depression of 1929, then U.S. President Herbert C. Hoover thought that his country would overcome crisis with the "classical" economic policies that had been embraced until then. Just like today's Germany and Republican figures in the Fed, Hoover increased taxes, reduced investments, believing that it was necessary to balance the budget. But things deteriorated further and the crisis caused large unemployment in addition to a financial crash. As the unemployment escalated, this time Hoover urged capital holders not to dismiss employees and to consent to lesser gross profit. As you may guess, this is the last thing you can ask of a capitalist. Of course, unemployment continued to increase and British economist John Maynard Keynes was working on "The General Theory of Employment, Interest and Money" during those days. After taking a sore defeat in the 1933 elections, Hoover was succeeded by Franklin D. Roosevelt, who promised that he would not make the mistakes made by Hoover.Keynes's book was published in 1935 and the U.S. was the first country to implement his theories, thanks to the new regulations and institutions established after a preliminary preparation process. For instance, Tennessee Valley Authority (TVA) was a law that regulated financial and banking systems, in addition to Public Works Administration (PWA), which was one of the most important institutions that tackled unemployment between 1935 and 1942. The New Deal, which was set with National Industrial Recovery Act (NIRA), introduced great infrastructural investments that would improve the economy and increase profit rates in leading sectors, as well as laying down labor market rules to allow competition in all sectors. Paradoxically enough, the state was improving the economy and creating employment on the one hand, but it was paving the way for open competition on the other. Therefore, we cannot call Keynes's theories for that time and Roosevelt's economic policies "statist policies" alone, as they were multi-faceted policies to regenerate and overcome crisis. Now, Europe and all developing countries need a new version of the New Deal to end crisis.