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DRAFT REPORT (2025/2182(INI))

On European Central Bank – annual report 2025

ECON-PR-778306

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

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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.

This draft report on the European Central Bank's 2025 annual report addresses governance, monetary policy, secondary objectives, and other aspects. It recalls the ECB's primary mandate of price stability and its independence, and invites the ECB to revise its inflation target and reduce its role in sovereign debt markets.

Committee position. The rapporteur proposes a resolution that recalls the ECB's primary mandate, invites it to revise its inflation target and reduce its role in sovereign debt markets, and addresses other aspects such as the digital euro and financial stability.

Key points

  1. Recalls that the ECB's primary objective is to maintain price stability, and that its statutory independence is a prerequisite for fulfilling this mandate.
  2. Highlights that the ECB is accountable to Parliament and must act without political interference; invites the ECB to enhance transparency instruments.
  3. Expresses concern at high inflation and that the ECB reacted too slowly; invites it to assess causes and not ease policy too rapidly.
  4. Invites the ECB to revise its symmetric 2% target towards a qualitative framework defining price stability as a state where expected price changes do not alter decisions.
  5. Notes that deflation can be benign; supports the ECB's role in avoiding protracted deflation due to deficient money supply.
  6. Supports the ECB in reducing its direct role in purchasing securities and calls on it to avoid paying deposit rates above market rates.
  7. Calls on the ECB to drastically diminish its role in sovereign debt markets and expresses concern about diverging TARGET2 balances.
  8. Notes that climate change is a political matter and that monetary policy is subject to proportionality assessment.
  9. Takes note of digital euro discussions, stresses the role of cash, and supports ECB efforts to accommodate the international role of the euro.
  10. Expresses concern at ECB losses in 2023 and 2024 due to interest rate risk.
  11. Supports the ECB's role in financial stability and as lender of last resort to solvent institutions against good collateral at penalty rates.
  12. Points to the need for ambition in the work of the ECB High-Level Task Force on Simplification.

Who is affected

  • The European Central Bank, which is invited to revise its inflation target, reduce its role in sovereign debt markets, and enhance transparency.
  • Banks, which may be affected by calls to avoid deposit rates above market rates and to maintain high collateral standards.

Figures and deadlines

  • EU annual inflation stood at 2.4% in August 2025 and euro area inflation at 2.2% in September 2025.
  • The ECB's inflation target has shifted to a symmetric target of 'around 2%'.

Legal basis: Articles 119, 123(1), 125, 127(1) and (2), 130, 282(2) and 284(3) TFEU; Articles 3 and 13 TEU; Statute of the ESCB and of the ECB, Articles 2, 15 and 21.