First part of the Q&A during the meeting between the MEPs from the Economic and Monetary Affairs Committee and Christine Lagarde, European Central Bank President, on the subject of the regular monetary dialogue as well as the ECB’s revised inflation target and the consequences of a rapid increase in housing costs.

meeting

European Central Bank

monetary dialogue with the ECB (T)

Committee on Economic and Monetary Affairs

LAGARDE, Christine (FR)

TINAGLI, Irene (S&D, IT)

Monetary Dialogue with Christine Lagarde, President of the European Central Bank: Q&A (1/2) - ECON Committee

<p>SOUNDBITE (English), Markus FERBER (EPP, DE), Question concerning the increasing concerns coming from both citiziens and national banks in regards of the growing inflation levles in the EU.</p>

SOUNDBITE (English), Christine LAGARDE, President of the European Central Bank Answer explaining how the ECB is monitoring the three key drivers behind the inflation spike, namely the surge in energy prices, the strong post-pandemic demand for goods combined with a partially disrupted global production chain and, lastly, the VAT regime in germnay. Furthermore, it is explained how the ECB intend to tackle and control those themes.

SOUNDBITE (English), Pedro SILVA PEREIRA (S&amp;D, PT) Two questions. The first question focus on how long the ECB's Emergency Purchase Programme will last, especially in light of the fact that Covid-19 is surging again in many european countries. The second question regards the reliance in the future by the ECB on rating agencies for risk assements.

SOUNDBITE (English), Christine LAGARDE, President of the European Central Bank Answer remarking how the ECB will keep the Emergency Purchase Programme operational untill either March 2022 or prolong it unitill the end of the Pandemic. Furthermore, it is also mentioned how the collateral relationship between the ECB and external rating agencies will be discussed by the end of the year.

SOUNDBITE (English), Luis GARICANO (Renew, ES) Question on the recovery times of the economies of different European countries, moreover the long term plans of the ECB are discussed: special focus given to the QE strategy and the eventual fallbacks in increased interests rates if and when the ECB will stop the programme.

SOUNDBITE (English), Christine LAGARDE, President of the European Central Bank Answer explaining the different variables influencing the recovery times of European countries. Furthermore the importance of the Next Gen Eu and Emergecy Purchase Programme are discussed.

SOUNDBITE (English), Ernest URTASUN (Greens/ALE, ES) Question on the inflation levels within the EU. Furthermore it also asked how the worsening sanitary situation in Europe will effect the economic output forecasts from the ECB, in particular concerning wage growth.

SOUNDBITE (English), Christine LAGARDE, President of the European Central Bank explaining how the Answer hard data collected during the last quarters are still producing a relatevely positive outlook. Nonetheless, the ECB is constantly monitoring various sources of informations (from corporate contacts to trade union contacts). Data suggests that, despited the ongoing Covid crisis, salary negotiations will take place and they will be implemented in the coming moths.

SOUNDBITE (English), Gerolf ANNEMANS (ID, BE) Question on the ECB's plans to not increase interest rates in the near future and on the Automatic Wage Indexation scheme.

SOUNDBITE (English), Christine LAGARDE, President of the European Central Bank Answer focusing on the automatic wage indexation scheme and on the very specific role that the ECB holds within the implemantation of this scheme.

SOUNDBITE (English), Michiel HOOGEVEEN (ECR, NL) Question on the correlation and possible outcomes of the growing prices in the real estate market and inflation both within and outside the EU.

SOUNDBITE (English), Christine LAGARDE, President of the European Central Bank Answer explaining the existing differences within the eurozone in regard of the housing market. It also introduced the fact that owners occupied housing costs will be included into the ECB's measurement of inflation. The answer also takes into consideration the broad global scenario of inflation, with particular focus given to the US.

SOUNDBITE (English), Chris MACMANUS (The Left, IE) Questions on the institutional role that the ECB will play in the aftermath of Covid-19 Crisis and on the curren views of the ECB on the Troika's approach.

SOUNDBITE (English), Christine LAGARDE, President of the European Central Bank Answer explaining the future roles that the ECB will hold: protect price stability and economic development, backed by a set of secondary objectives (e.g., fight against climate change).