“We will take all necessary measures for price stability”


The European Central Bank maintains a strongly expansive stance of its monetary policy, but perhaps suffering from the growing unease due to holding the bar steady in the face of an expensive runaway life, the president Christine Lagarde has raised the tone of anti-inflationary rhetoric. “We will take all necessary measures to reach our 2% inflation target over the medium term”, he said before the Conference of Parliamentary Committees for European Affairs (COSAC), which met in the French Parliament at the start of the EU presidency semester.

“I would like to confirm to you today that our commitment to price stability remains firm,” he insisted. Lagarde reiterated that according to the ECB «the engines of inflation should lose momentum during the year. But we understand that this rise in prices worries a large number of our fellow citizens and we take these concerns very seriously ».

The position of the ECB appears increasingly uncomfortable with the passing of the months, while the other major Western central banks react to rising inflation by correcting the course of their respective monetary policies in a restrictive sense.

On the other hand, several observers have pointed out that monetary policies can do nothing about the factors that are currently most determining the increases, that is, shortages in the supply of crude oil and above all gas and difficulties in the supply chains of goods. And this is precisely an element on which Lagarde wanted to dwell: we must therefore also “strengthen the offer,” he said. And this is not up to the central banks.

Expensive energy prices

Then, however, looking at the specific case of energy prices, in particular gas, which has skyrocketed perhaps also due to the accelerations of the European Union on the green transition and towards other sources, the ECB president has aired a cure that could appear paradoxical . Given that these increases “risk weakening the confidence of European citizens in decarbonisation – he said – the solution must therefore be to accelerate renewable energy and other green technologies, in order to be able to deploy them more quickly”.

In any case, Lagarde wished to quote the late president of the European Parliament, David Sassoli, at the opening of his speech. And then he argued that as the EU «we are gradually emerging from this crisis, stronger and with solid foundations on which to build the future. However, there remains a long way to go. Today we are given the opportunity, in the new phase that is opening, to make the decisions that will allow us to overcome the challenges we face. It is the best way to show our fellow citizens, and to the whole world, that the euro unites us and that by uniting us – he concluded – makes us stronger ».

Finally, the digital euro

“I am convinced that we must advance in forced stages on the digital euro. It sounds simple and various finance ministers have asked me why you need 2 years of preparatory work and 5 to complete »the launch. “I hope it can be done a little earlier, but it is very complicated – he noted -. Just to understand, the Chinese authorities have been working on it for 7 years. For the past year and a half, we have been told that they are on the verge of launching a digital renminbi. But we’ll see if it arrives for the Winter Olympics ».


Source: RSS DiariodelWeb.it Economia by www.diariodelweb.it.

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