“The ECB’s recent decision not to raise its key interest rate yet again falls short of what is needed. The inflation level has been considerably above target for months. The argument that this is a temporary phenomenon has lost all credibility. If the inflationary pressure is really due to one-off effects, they should be off again at some point. If the ECB takes its mandate seriously, the time to tighten monetary policy is now. Citizens are already losing faith in the stability of the Euro. The ECB should not only be concerned about inflation, but also about the people’s declining trust in the single currency”, said Markus Ferber MEP, the EPP Group’s Spokesman in the Economic and Monetary Affairs Committee.
His comments come ahead of the celebration of the 20th anniversary of the Euro that will take place this evening in the European Parliament in the presence of Christine Lagarde, President of the European Central Bank.
“For all these years, the ECB’s primary role has been to safeguard Euro stability with the aim of preserving the purchasing power of Europeans. In the end, behind the rates and the often abstract figures, lies the harsh reality of a difficult end of the month for many people. At a time when record high energy prices are putting the wallets of many households at further risk, the ECB should not forget its primary role in serving the well-being of Europeans. Don’t destroy the purchasing power of Europeans! It is high time for Christine Lagarde and the ECB Governing Council to send out a clear signal that the ECB is still committed to maintaining price stability”, said Georgios Kyrtsos MEP, responsible for the EPP Group for the 2021 Annual Report on the ECB that will be voted on during this plenary.
“Christine Lagarde should take a close look at what the Federal Reserve does. Chairman Powell already had to admit that the current inflationary pressure is all but transitory and has indicated that there will be at least three rate hikes in 2022. She would be well advised to flick the switch and gradually phase out the ultra-accommodative monetary policy stance”, said Ferber.
