March 01
2021
Anjum Shabbir
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10th January 2020
Banking & Finance Institutional law

Christine Lagarde: ECB priorities and a greener monetary policy

In an interview with “Challenges” magasine, Christine Lagarde, the new ECB President, discussed the ECB’s agenda, including green monetary policy and the ECB’s inflation objectives.

On the current economic slowdown and the possible policy options, she admitted that “a concerted fiscal stimulus at the euro area level would help speed up growth, which at 1.1% in 2020 and 1.4% in 2021 (according to our latest projections) remains below our potential, at least for 2020.”

On the development of a green strategy for monetary policy, the ECB President stated that “the stakes are high enough to arouse a keen interest in these questions, while pursuing our primary mission”, and suggested that the ECB could develop a green strategy at the time of the upcoming review of its monetary policy strategy.

Ms Lagarde also made reference to digital currencies: the ECB will continue to assess the costs and benefits of issuing a central bank digital currency (CBDC). However, she warned that “the prospect of central bank initiatives should neither discourage nor crowd out private market-led solutions for fast and efficient retail payments in the euro area”.

The full interview is available here.

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