The European Central Bank celebrates its 25th anniversary

2023-05-24T14:40:28.806Z

Highlights: The European Central Bank was created in 1988, a few months before the introduction of the single currency. Since then, it has pursued its objective of maintaining price stability. This anniversary comes at a time when inflation in the euro area is at an all-time high. "We will ensure the return of inflation to our objective," Christine Lagarde, its president, assured Wednesday in the European press. The ECB now employs 4,200 people, ten times more than in 1999, according to the latest figures.

In 25 years, the ECB has established itself among the main monetary institutions with crises that have forced it to push its limits as guardian of the euro, which has now become the...

The European Central Bank celebrates its 25th anniversary

In 25 years, the ECB has established itself among the main monetary institutions with crises that have forced it to push its limits as guardian of the euro, which has now become the second most used currency in the world, behind the dollar.

The ECB now employs 4,200 people, ten times more than in 1999. REUTERS - Ralph Orlowski

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The European Central Bank was created in 1988, a few months before the introduction of the single currency. Since then, it has pursued its objective of maintaining price stability. But in its 25 years of existence, the institution has had to come to terms with both the imperfections of the common market and the global economic situation.

The ECB quickly had to deal with crises, notably that of public debt in the euro zone, in the wake of the financial storm of 2008. Each time, the ECB adapts its arsenal of means beyond the classic weapon of rates.

This anniversary comes at a time when inflation in the euro area is at an all-time high. It reached another 7% in April, still driven by the prices of energy and imported goods. The ECB wants to reduce it to a maximum of 2%. "We will ensure the return of inflation to our objective," Christine Lagarde, its president, assured Wednesday in the European press.

What's next? There are many projects: to encourage banks to finance the real economy with the liquidity accumulated during the pandemic. Make them contribute to the fight against global warming, in particular through green bonds. Not to mention the digital euro, as a new method of payment in the face of the multiplication of cryptocurrencies.

It could be launched "in three or four years," said Fabio Panetta, a member of the ECB's executive board, in an interview with Les Échos.

The European Central Bank celebrates its 25th anniversary

The European Central Bank celebrates its 25th anniversary

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