The European Central Bank (ECB) should not continue to focus only on its goal of controlling inflation. French President Emmanuel Macron said this today, quoted by Reuters, BTA writes.
Macron called on the ECB to focus its efforts also on the objectives of protecting the environment and reducing harmful emissions of carbon dioxide in the atmosphere when setting its monetary policy.
Any attempts to extend the mandate of the European Central Bank are likely to meet strong resistance from the other countries of the eurozone. Among them is Germany, for which price stability is of primary importance, Reuters points out.
The mandate of the ECB is formulated in the Treaty on the Functioning of the European Union. It states that the central bank of the eurozone countries must maintain price stability, and in this regard it aims for inflation levels of 2 percent on an annual basis.
For its part, the US Federal Reserve Board is also aiming for an annual inflation rate of 2 percent. Among the objectives of the UFR are the maximum employment of the American labor market and the maintenance of moderate long-term interest rates.
"We can no longer have a monetary policy whose only goal is inflation," Macron said in a speech at the Sorbonne in Paris dedicated to the European Union.
He added that the eurozone countries should consider extending the ECB's mandate and set it the goal of achieving an economy that develops in conditions of the release of less carbon dioxide emissions. The transition to this type of policy contributes to the structure of price pressure, the French president points out.
The ECB is moving towards practices that will make its monetary policy greener, according to Reuters. The central bank is discussing the acquisition of bonds issued by companies that pollute the environment less in their operations. The provision of incentives to banks that grant loans to such companies is also being discussed.