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European Central Bank – annual report 2023

TA-9-2024-0094 · P9_TA(2024)0094 · PE752.845

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✦ 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 in its annual report how it interprets its secondary objectives. It calls on member states to align fiscal policies with the ECB's monetary policy and urges a swift outcome on revising the EU's economic governance rules. It sets conditions for a digital euro: it must not replace cash, must respect privacy and must not endanger financial stability. It welcomes written accountability practices with the ECB and suggests the ECB create an internal evaluation office for ex post assessment of its policy decisions.

Key points

  1. Recalls that Article 127 TFEU sets price stability as the ESCB's primary objective, with support for general EU economic policies without prejudice to it.
  2. Echoes the ECB's statutory independence under Article 130 TFEU and says it must be complemented by a corresponding level of accountability.
  3. Is deeply worried about persistently high inflation, especially core inflation, and calls on the ECB to take all necessary measures to reduce it in line with its mandate.
  4. Notes different debt, deficit and public investment levels among member states, regrets insufficient reform while interest rates were low, and urges a swift outcome on revising EU economic governance rules.
  5. Denounces Russia's invasion of Ukraine and its repercussions, and welcomes the inclusion of REPowerEU in recovery and resilience plans to reduce energy dependence on Russia.
  6. Calls on member states to align fiscal policies with the ECB's monetary policy and for fiscal efforts to focus on productive investments and reforms.
  7. Notes that inflation began rising above target in July 2021 but the ECB only started to tackle it in June 2022, and maintains a swifter response could have averted the peak of 10,6% in October 2022.
  8. Invites the ECB to fundamentally review and improve its models in light of their subpar performance in recent years.
  9. Calls on the ECB to better define the meaning of 'medium term' and to look into a more qualitative approach to price stability.
  10. Expresses grave concern at media reports of political bias within the ECB on the greening of policies and calls on it to investigate and address any suspicions of ideological bias.
  11. Says a digital euro must respect competition, must not replace cash, must respect privacy and must not endanger financial stability, and recalls its introduction depends on a decision of Parliament and the Council.
  12. Welcomes written accountability practices with the ECB, suggests an internal evaluation office for ex post assessment, and calls on the ECB to publish written feedback on Parliament's resolutions every year.

Who is affected

  • The European Central Bank: asked to act on inflation, review its models, define 'medium term' and report on its secondary objectives.
  • Euro area member states: called on to align fiscal policies with the ECB's monetary policy and to incorporate gender equality in central bank appointment processes.
  • Lower-income households and SMEs: noted as disproportionately affected by high inflation and rising interest rates.
  • The banking and digital payments sector: a digital euro must respect competition and not endanger 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 % in 2022 and 2023.
  • Additional private and public investment needs estimated at nearly EUR 650 billion per year until 2030.
  • Headline inflation came down from 8,4 % in 2022 to 5,2 % in 2023.
  • Inflation peak of 10,6% seen in October 2022.

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