European Central Bank's 2025 Plan: Stable Prices, Digital Euro, and Equality

European Parliament resolution on the ECB’s 2025 annual report (10 Feb 2026)

• Inflation: EU inflation was 2.5 % and euro‑area inflation 2.1 % in October 2025. Consumers still expect inflation above 2 %.
• ECB’s mandate: Keep prices stable (target “below, but close to, 2 %” → now a symmetric 2 % target). The ECB must act independently, be accountable to Parliament, and keep its actions transparent.
• Monetary policy tools:
• Main refinancing operations, marginal lending, and deposit facilities form a tight interest‑rate corridor.
• The ECB has widened its purchase programmes (Securities Market Programme, OMT, PSPP, PEPP, Transmission Protection Instrument).
• Reinvestments under the asset‑purchase programme stopped July 2023; PEPP reinvestments stopped December 2024, shrinking the ECB’s balance sheet.
• Policy actions:
• Deposit rate cut by 200 basis points between June 2024 and June 2025.
• ECB urged to analyse causes of post‑COVID inflation, supply shocks, and to give policy recommendations for future crises.
• ECB encouraged to phase out government‑bond purchases gradually and to avoid keeping short‑term lending rates above market levels.
• Collateral standards should be high and used as a monetary‑policy tool.
• Economic support: The ECB must support EU economic policies as long as price stability is not harmed. Sound public finances are essential in a high‑interest‑rate environment.
• Digital euro & payments:
• The digital euro should complement cash, ensure universal payment access, and reduce dependence on non‑EU payment systems.
• Digital‑currency projects (Pontes, Appia) and distributed‑ledger technology for wholesale settlement are welcomed.
• Cash must remain available; legal‑tender status is under discussion.
• Crypto‑assets, especially stablecoins, need closer monitoring.
• Other developments:
• Bulgaria became the 21st euro‑area member on 1 Jan 2026.
• The ECB’s real‑time settlement system (T2/T2S) had a temporary outage in Feb 2025; it must be closely monitored.
• The ECB recorded losses in 2023‑24 from interest‑rate risk but remained operationally sound.
• The ECB’s role as lender of last resort, its financial‑stability work, and its efforts to improve financial literacy are supported.
• Simplification initiatives, internal dialogue, staff representation, and whistleblowing mechanisms are encouraged.
• ECB board nominations should be gender‑balanced, merit‑based, and presented to Parliament.
• Conclusion: The Parliament urges the ECB to keep price stability, enhance transparency, reduce its balance‑sheet size, support EU economic goals, and strengthen digital‑payment infrastructure while maintaining independence and accountability.