(Finance) – “I fourth quarter salary data they are obviously numbers encouraging“, but “the Governing Council must be more confident that the disinflation process we are observing will be sustainable and will lead us to the medium-term objective of 2%”. Christine LagardePresident of the European Central Bank (ECB), in the press conference at the end of the informal Eurogroup in Ghent, Belgium.
“There are many sectors and employees affected by the negotiations which will be concluded during the first quarter of 2024 and I think these numbers, especially if they continue to be encouraging, will be important for us to evaluate in the future to achieve confidence,” he said.
Asked whether the ECB could act before the Federal Reserve, Lagarde replied: “La ECB is independent and determined to continue to be independent and data-dependent in the assessment we make and the policy decisions we have approved.”
The ECB’s number one also spoke about capital market union and the need for huge investments to finance the gree transition. “800 billion per year will be needed in Europe from 2031 to meet the 2040 commitment of 90%” emissions less and “75 billion a year will be necessary if all European countries maintain the NATO commitment of 2%” of GDP in defence, has explained. And again: “250 billion euros, or approximately 1.8% of European GDP is the financial outflow net that leaves Europe to go to the rest of the world and predominantly the United States market”, underlining the “urgency” for the capital market union.