ECB Vice President: Inflation Is on the Right Track Despite Challenges

Amid global economic fluctuations and challenges facing financial markets,
inflation in the Eurozone remains under control, according to European Central Bank (ECB) Vice President Luis de Guindos.
He emphasizes that fundamental factors have begun to stabilize despite ongoing challenges.

Contents

Inflation Stability
Growth Challenges

Inflation Stability

Luis de Guindos, Vice President of the European Central Bank,
affirmed that inflation remains under control despite a slight increase in recent months.
He pointed out that key factors, such as employee compensation and inflation in the services sector,
have started to stabilize.
This supports the ECB’s forecast that inflation will reach 2% by the end of 2025 or early 2026.

In an interview published by the ECB, de Guindos stated that the European economy continues to face uncertainty due to tariffs,
global financial policies, and the impact of adjustments in interest rate expectations and German bond yields,
which are being closely monitored.

Growth Challenges

De Guindos highlighted that U.S. trade and regulatory measures are a major source of instability,
noting their potential impact on economic growth forecasts in the Eurozone.
As a result, the ECB has lowered its growth projections for 2025 and 2026 by 0.2 percentage points,
citing declining investor confidence and fears of a potential trade war.

Nevertheless, he suggested that European consumption could recover if consumer confidence improves,
supported by factors such as rising real wages and better financing conditions.

In conclusion, the ECB Vice President stressed the importance of European market reforms,
including the integration of the internal market, completion of the banking union,
and the Capital Markets Union, to enhance productivity and European competitiveness.

ECB Vice President: Inflation Is on the Right Track Despite Challenges

ECB Vice President: Inflation Is on the Right Track Despite Challenges

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