Monetary policy statement by Christine Lagarde, President of the ECB, and Luis de Guindos, Vice-President of the ECB | Frankfurt am Main, 3 February 2022 | Good afternoon, the Vice-President and I welcome you to our press conference. The euro area economy is continuing to recover and the labour market is improving further, helped by ample policy support. But growth is likely to remain subdued in the first quarter, as the current pandemic wave is still weighing on economic activity. Shortages...

Today, the Commission is presenting a new Standardisation Strategy outlining our approach to standards within the Single Market as well as globally. The Strategy is accompanied by a proposal for an amendment to the Regulation on standardisation, a report on its implementation, and the 2022 annual Union work programme for European standardisation. This new Strategy aims to strengthen the EU's global competitiveness, to enable a resilient, green and digital economy and to enshrine democratic values in technology applications. Standards are...

We are jointly committed to Europe's energy security and sustainability and to accelerating the global transition to clean energy. We also share the objective of ensuring the energy security of Ukraine and the progressive integration of Ukraine with the EU gas and electricity markets. The EU and the United States cooperate closely on energy policy, decarbonisation and security of supply in the U.S.-EU Energy Council. The EU's and the United States' commitments to meet the goals of the Paris Agreement,...

The chart of the week shows how surging energy costs have boosted inflation, especially in Europe, after fossil-fuel prices nearly doubled in the past year. Rising food prices have also helped to boost inflation. Meanwhile, continuing supply chain disruptions, clogged ports, logistics strains and strong demand for merchandise have broadened these price pressures, especially in the United States. Higher imported goods prices have contributed to inflation in some regions, including Latin America and the Caribbean. Inflation is likely to remain elevated....

Euro banknote counterfeiting at historically low level in 2021 347,000 counterfeit euro banknotes withdrawn from circulation in 2021, a historically low level in proportion to banknotes in circulation About two-thirds of total withdrawn counterfeits were €20 and €50 banknotes Euro banknotes remain a trusted and safe means of payment Authenticity of euro banknotes can be verified using “feel, look and tilt” method Some 347,000 counterfeit euro banknotes were withdrawn from circulation in 2021 (180,000 in the second half of the...

Record debt and deficits during the pandemic prompted many nations to suspend their fiscal rules. Since 1990, a growing number of countries have adopted fiscal rules to strengthen budgetary discipline and enhance the credibility of public finances. These numerical limits on spending, deficits, or debt signal a government’s commitment to prudence. At the same time, fiscal councils are becoming more common to provide independent oversight and monitor the compliance of rules. What happens when a country must respond to a large...

A large and sudden jump in real interest rates could lead to a further selloff in stocks. Supply disruptions coupled with strong demand for goods, rising wages and higher commodities prices continue to challenge economies worldwide, pushing inflation above central bank targets. To contain price pressures, many economies have started tightening monetary policy, leading to a sharp increase in nominal interest rates, with long-term bond yields, often an indicator of investor sentiment, recovering to pre-pandemic levels in some regions such as...