Luis de Guindos, ECB Vice-President, presented the 2025 Annual Report to the European Parliament’s ECON Committee, highlighting economic developments, monetary policy, and progress in strengthening the Eurozone.
Luis de Guindos, Vice-President of the European Central Bank (ECB), delivered introductory remarks at the European Parliament’s Committee on Economic and Monetary Affairs (ECON) regarding the ECB’s Annual Report for 2025. This was his final presentation in this role, as his eight-year mandate concludes later this month.
The ECB published the Annual Report alongside a formal response to the European Parliament’s resolution on the previous year’s report, emphasizing accountability and ongoing dialogue.
In his remarks, de Guindos reviewed the economic and monetary policy developments during 2025. The euro area experienced a moderate recovery with 1.4% growth, supported by strong exports early in the year and sustained by domestic demand amid external uncertainties. Inflation averaged 2.1%, close to the ECB’s 2% target, leading to a 100 basis point reduction in the deposit facility rate to 2.0% in mid-2025.
The ECB concluded its assessment of the monetary policy strategy, reaffirming the symmetric 2% inflation target and emphasizing the importance of a forceful response to deviations. The Governing Council maintained interest rates unchanged recently, citing high uncertainty due to geopolitical tensions and volatile energy markets.
Beyond monetary policy, the ECB made progress in strengthening the Economic and Monetary Union, including advancing the digital euro project for potential issuance in 2029, developing a modern cash framework, and supporting a tokenized European financial ecosystem through initiatives like Appia and Pontes.
The ECB also contributed to establishing a robust regulatory framework and the savings and investments union, aiming to ensure financial stability and support capital flow to productive investments. Efforts to simplify regulatory and reporting frameworks for banks were also undertaken, maintaining resilience while improving efficiency.
De Guindos highlighted the resilience of the euro and the importance of the ECB’s relationship with the European Parliament, expressing confidence in the future leadership and the ECB’s ongoing commitment to price and financial stability, which underpin Europe’s prosperity.
He concluded by inviting questions from the committee.
