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REPORT (2023/2064(INI))

On the European Central Bank – annual report 2023

A-9-2023-0412

Committee on Economic and Monetary Affairs · Rapporteur: Johan Van Overtveldt

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✦ In shortFull textProcedure & committee votes
✦ In short · AI summary of this text, generated 26 Sept 2026

Written by a language model from the full text only; every figure comes from the text. The paragraph links open the paragraph a statement rests on — check the text itself before relying on it.

Parliament's resolution on the European Central Bank's annual report 2023 reviews the ECB's monetary policy, its secondary mandate and its accountability to Parliament. It is deeply worried about persistently high inflation, especially core inflation, and calls on the ECB to take all necessary measures to reduce inflation in line with its mandate. It asks the ECB to better define 'medium term', review its models, and explain how it interprets its secondary objectives, including climate-related work. It sets out conditions for a digital euro: it must not replace cash, must respect privacy and must not endanger financial stability. It calls for stronger accountability, gender balance in ECB appointments, and alignment of the ECB's whistleblowing framework with the EU Whistleblower Directive.

Committee position. The Committee on Economic and Monetary Affairs proposes a resolution that reviews the ECB's 2023 annual report, expresses concern about high inflation, calls for better accountability and model review, and sets conditions for the digital euro.

Key points

  1. Recalls that the ECB's primary objective is price stability and that, without prejudice to it, the ECB supports the EU's general economic policies.
  2. Is concerned that failing to bring inflation to target while raising financing costs risks the ECB losing credibility.
  3. Is deeply worried about persistently high inflation, especially core inflation, and calls on the ECB to take all necessary measures to reduce it.
  4. Notes that inflation began rising above target in July 2021 but the ECB only started to tackle it in June 2022, and that other central banks acted more promptly.
  5. Invites the ECB to fundamentally review and improve its models and their role in policymaking.
  6. Calls on the ECB to better define 'medium term' and to look into a more qualitative approach to price stability.
  7. Supports scaling back asset-purchasing programmes and notes the ECB intends to reinvest PEPP principal payments until at least the end of 2024.
  8. Reminds the ECB to devote a specific chapter in its annual report to its secondary objectives and their impact on the primary mandate.
  9. Welcomes the ECB's work on climate risk assessment and stress tests, and notes its climate roadmap does not include targeted longer-term green refinancing operations.
  10. Sets conditions for a digital euro: it must respect competition, not replace cash, respect privacy and not endanger financial stability.
  11. Calls on the ECB to maintain monitoring of crypto-assets and their risks, and welcomes its attention to cyberattack risks.
  12. Calls on the ECB to bring its internal whistleblowing framework into line with the EU Whistleblower Directive.

Who is affected

  • The European Central Bank, which is asked to adjust its monetary policy, models, communication and accountability practices.
  • Euro area member states, which are called on to align fiscal policies with the ECB's monetary policy and to ensure gender equality in central bank appointments.
  • Lower-income households, which are disproportionately affected by high inflation.
  • Small and medium-sized enterprises, which face effects from the pandemic and the war in Ukraine.
  • The digital euro project, which must meet conditions on competition, cash, privacy and financial stability.

Figures and deadlines

  • Euro area growth expected to slow from 3.5 % in 2022 to 0.9 % in 2023, then rebound to 1.5 % in 2024.
  • Headline inflation expected to average 5.6 % in 2023, 3.2 % in 2024 and 2.1 % in 2025.
  • Core inflation rose to 5.5 % in June 2023 then decreased to 4.2 % in September 2023.
  • Government deficits projected to decline to 3.1 % of GDP in 2023 and 2.4 % in 2024.
  • Government debt to GDP ratio decreased in the euro area from 95.0 % to 91.2 % and in the EU-27 from 87.4 % to 83.7 %.
  • Additional private and public investment needs estimated at nearly EUR 650 billion per year until 2030.
  • Inflation peaked at 10.6 % in October 2022.
  • Headline inflation came down from 8.4 % in 2022 to 5.2 % in 2023.

Legal basis: Articles 123, 127(1) and (2), 130 and 284(3) TFEU; Articles 3 and 119 TEU.