In view of the high level of economic uncertainties linked to Russia’s continued military aggression in Ukraine, the European Parliament calls on the European Central Bank to conduct a “more balanced and gradual” normalisation of its monetary policy and for “more justification of any future policy rate decisions”, in the ‘Andresen’ report on the activities of the ECB, which it adopted on Thursday 16 February by 376 votes to 96 with 35 abstentions.
MEPs note that “traditional monetary policy instruments have limited influence on the fight against inflation, which is mainly driven by the supply side”, in particular by energy and food prices.
The European Parliament is concerned about the risk of fragmentation due to the large national inflation differences within the euro area. It also asks the ECB to explain how it has acted to meet its so-called ‘secondary’ objectives, such as economic development and the fight against climate change, in addition to its primary task of maintaining price stability.
“I welcome that we have been able to win a majority in favour of greater caution with regard to the current aggressive rate hikes”, said Rasmus Andresen (Greens/EFA, German) in a statement.
See the European Parliament report: https://aeur.eu/f/5dz (Original version in French by Mathieu Bion)