Christine Lagarde, ECB President, addressed the European Parliament on the ECB’s annual report, discussing monetary policy, resilience, digital euro, and Europe’s economic future.
Christine Lagarde, President of the European Central Bank (ECB), addressed the European Parliament during a plenary session to discuss the ECB’s Annual Report. She emphasized the importance of ECB independence for price stability and accountability to democratic institutions.
Lagarde highlighted the global environment characterized by geopolitical tensions and policy uncertainty, affecting trade, energy, and supply chains. She noted that despite these challenges, euro area economic activity remains resilient, with inflation expected to stabilize around the 2% target in the medium term.
The ECB maintains a data-dependent, meeting-by-meeting approach to monetary policy, with interest rates unchanged as of the latest meeting, based on inflation and economic outlook assessments.
Lagarde discussed efforts to strengthen Europe’s resilience and competitiveness, including the future of central bank money. The ECB supports the proposed legal tender Regulation to ensure cash remains accessible and is preparing to issue a new series of euro banknotes.
The digital euro was presented as a complement to cash, offering privacy, offline payments, and reduced merchant fees. The ECB encourages the European Parliament to advance the digital euro Regulation.
Additional initiatives include developing tokenised central bank money for digital assets, with projects Pontes and Appia aimed at enabling wholesale transactions and creating a resilient European digital asset market.
The ECB’s High-Level Task Force on Simplification has proposed reducing regulatory complexity while maintaining financial stability. The broader policy framework includes advancing the savings and investments union, deepening the Single Market, fostering innovation, and protecting strategic autonomy.
Lagarde concluded by reaffirming the ECB’s commitment to price stability, European integration, and the importance of dialogue between the ECB, EU institutions, and citizens. She welcomed Bulgaria’s accession to the euro area, emphasizing the benefits of a strong, resilient Europe.
For more information, visit the official ECB press release: ECB Press Release.
