The tightening of monetary policy on interest rates and financing conditions is making itself felt, and the cost of credit increases for banks and households. “In April, lending rates reached their highest level in more than ten years, reaching 4.4% for corporate loans and il 3,4% for mortgage loans – writes the ECB in the economic bulletin -. The ECB believes that the prospects for growth and inflation remain highly uncertain”.
A difficult situation, to the point that even the president of the Eurogroup Paschal Donohoe in the EP commented: “We are all aware of the consequences of the ECB’s decisions. These challenges must be weighed against the alternative. The alternative is that if inflation is not reduced in Europe, particularly in the euro area, we will end up being poorer. If we fail to bring inflation back to the ECB’s medium-term target, the consequences this will have on living standards in the European Union. They will make themselves felt in the coming years. So I think steps are needed to avoid such a scenario.”
“We have great respect for the ECB and we reaffirm its independence, but it is also legitimate to make observations. I criticized not from today, some choices made on the fight against inflation, which comes from the cost of raw materials whereas in the US it comes from a very favorable economic situation, but we believe in the ECB and the European Commission. We are pro-Europeans but we also have the right to participate in the debate”, concluded the deputy prime minister and foreign minister Antonio Tajani on the sidelines of the EPP summit. (Ticker)