Lagarde: politics should take further steps towards European integration

The President of the European Central Bank Lagarde spoke in Strasbourg during the Plenary of the European Parliament to present the annual budget of the ECB. The president used stimulating words that were striking in their tone of encouragement to act with greater determination for European integration. "In the face of current economic and geopolitical challenges, policymakers must have the courage to take the further steps necessary to advance European integration. I count on this Parliament - and the next one - to lead the European action needed to strengthen the the euro area." the president said.

On the next monetary policy moves, Lagarde underlined that “the ECB will continue to do its part, within its mandate. Let me reiterate our unwavering commitment to ensuring price stability.” On rates, Lagarde has made it clear that she wants to wait for more data before making a cut. The central banker's prudence reflects what was learned from the minutes of the last Frankfurt Board meeting, which revealed a fear of reputational damage by risking moves that are not aligned with a consolidated tendency towards a decline in inflation in the eurozone. Many analysts have a different opinion and have recently noted how the ECB's prolonged monetary restriction could end up eroding the margins of hoped-for and already less than brilliant growth compared to the United States and China.

staff @euroeconomie.it