Activities of José GUSMÃO related to 2023/2064(INI)
Shadow reports (1)
REPORT on the European Central Bank – annual report 2023
Amendments (35)
Amendment 13 #
Motion for a resolution
Recital A
Recital A
A. whereas, according to the JuneSeptember 2023 Eurosystem staff macroeconomic projections, the growth of the euro area economy is expected to slow down from 3.5 % in 2022 to 0.97 % in 2023; whereas this value is even lower than the 0,9% put forward on the June macroeconomic projections; whereas, according to a Eurostat flash estimate, the euro area grew by just 0.6 % in 2023; whereas this represents the worst performance since the recession of 2020;
Amendment 15 #
Motion for a resolution
Recital A a (new)
Recital A a (new)
Aa. whereas the current predictions of recovery of 1.0% in 2024 and 1,5% in 2025 indicate a slow pace for the economy; whereas the June projections were revised down by 0,4 percentages points for 2024 and 0,1 percentage points for 2025, reflecting a significant worsening of the macroeconomic scenario, namely tighter financing conditions;
Amendment 16 #
Motion for a resolution
Recital A b (new)
Recital A b (new)
Ab. whereas, according to the same predictions, both private consumption and gross fixed capital formation are expected to be severely hindered; whereas the private consumption is expected to slow down from 4,1 % in 2022 to 0.3 % in 2023 and to recover to 1,6% in 2024 and 2025; whereas the case of investment is event worst, annual growth of GFCF is expected to slow down from 2,9 % in 2022 to 1,7 % in 2023 and to enter in negative values in 2024 at -0,4%;
Amendment 17 #
Motion for a resolution
Recital A c (new)
Recital A c (new)
Ac. whereas ECB’s latest euro area bank lending survey report a tightening of credit supply conditions and a sharp decreased of loan growth to households and companies; whereas, once more, this represents a worsening of the outlook scenario of June;
Amendment 18 #
Motion for a resolution
Recital A d (new)
Recital A d (new)
Ad. whereas the expected recovery of real disposable income depends on robust wage growth and fiscal transfers;
Amendment 19 #
Motion for a resolution
Recital B
Recital B
B. whereas, according to the JuneSeptember 2023 Eurosystem staff macroeconomic projections for the euro area, headline inflation is expected to average 5.46 % in 2023, 3.02 % in 2024 and 2.21 % in 2025, despitegreatly driven by falling energy prices and easing supply bottlenecks; whereas core inflation has been more persistent, with an increase to 5.53 % in June 2023, and is projected to overtake headline inflation in the near term and to remain above it until early 2024, mainly owing to strong wage growthAugust2023;
Amendment 22 #
Motion for a resolution
Recital B a (new)
Recital B a (new)
Ba. whereas headline inflation reach its peak on October 2022 at 10,6% and core inflation on March 2023 at 5,7%; whereas ECB projections of core inflation are constantly revised upward; whereas ECB recognizes that a significant part of the reduction of headline inflation was due to external factors such as the prices of commodities; whereas, according to the September projections, the withdrawn of energy and inflation fiscal compensatory measures will contribute again for a positive effect of energy inflation to headline inflation in the second quarter of 2024;
Amendment 23 #
Motion for a resolution
Recital B b (new)
Recital B b (new)
Bb. whereas unit profits contributed around with two-thirds to domestic inflation in 2022; whereas profit margins can partly accommodate the increase of prices without passing it to final consumers;
Amendment 24 #
Motion for a resolution
Recital C
Recital C
C. whereas, according to the Commission 2023 economic forecast, government deficits are projected to decline to 3.1 % of GDP in 2023 and 2.4 % in 2024; whereas the government debt to GDP ratio decreased in the euro area from 95.0 % to 91.2 % and in the EU-27 from 87.4 % to 83.7 % in 2022 and 2023 respectively; whereas government debt and deficits vary grandly among Member States;
Amendment 26 #
Motion for a resolution
Recital C a (new)
Recital C a (new)
Ca. whereas since July 2022 the ECB increased 10 consecutive times the reference interest rates; whereas the deposit facility rate reached 4%, representing the highest level since the creation of the common currency; whereas the current cycle of restrictive monetary policy is still ongoing; whereas the full set of economic and social consequences are yet to be fully assessed, such as further pressure on the EU and national budgets, on the stability of the financial system, and hardships for households;
Amendment 28 #
Motion for a resolution
Recital D
Recital D
D. whereas the ECB is politically independent, which means that neither EU institutions and agencies nor Member Statestatutory independence of ECB prevents democratic scrutiny of monetary policy, especially relevant goivernments should seek to infln the current and future economic and social consequence its;
Amendment 32 #
Motion for a resolution
Recital D a (new)
Recital D a (new)
Da. whereas the Global Financial Crisis and the following Sovereign Debts Crisis revealed the economic and political risks of EU lacking a lender-of-last- resort; whereas the current monetary policy is once again reinforcing the risk of fragmentation with a rising divergence between spreads of sovereign debts;
Amendment 33 #
Motion for a resolution
Recital E
Recital E
E. whereas the ECB’s primary objective is to maintain price stability, which it has defined as 2 % inflation over the medium termshould follow a dual mandate of full employment and price stability;
Amendment 37 #
Motion for a resolution
Recital E a (new)
Recital E a (new)
Ea. whereas the European Commission stated that “additional private and public investment needs in relation to the twin transitions and their policy objectives are estimated at nearly EUR 650 billion per year until 2030”1a; whereas the restrictive effect on investment of the tightening of monetary policy is still to be fully assessed; _________________ 1a European Commission. (2021). The EU economy after COVID-19: implications for economic governance.
Amendment 38 #
Motion for a resolution
Recital F
Recital F
Amendment 44 #
Motion for a resolution
Paragraph 1
Paragraph 1
Amendment 51 #
Motion for a resolution
Paragraph 2
Paragraph 2
2. Underlines that price stability is a prerequisite for the ECB to deliver on its mandate to support the EU’s general economic policies, such as the green and digital transitions; stresses that price stability is essential for attracting long term investmentsStresses that a number deal of factors are crucial to attract long term investments, namely quality infrastructures and education, research, and also price stability;
Amendment 61 #
Motion for a resolution
Paragraph 3
Paragraph 3
3. Fears that, without properly delivering on its mandate of maintaining price stability, the ECB risks losing its the set of recessive economic and social consequences of the current monetary policy, still to be fully assessed, will have no political accountability due to the lack of democratic legitimacy of ECB;
Amendment 68 #
Motion for a resolution
Paragraph 4
Paragraph 4
4. Is deeply worried about the persistently high inflation rates, especially core inflation rates, and their detrimental impact on competitiveness, investments, job creation and the purchasing power of consumerslong- lasting consequences of this unprecedented restrictive monetary cycle, especially if coupled with an equally restrictive fiscal policy; Stresses that the social hardships of such choices cannot be overlooked; Condemns the negative impact on housing access due to an increase of monthly housing mortgages, particularly strong in Member States where loans to a variable rate predominate;
Amendment 74 #
Motion for a resolution
Paragraph 5
Paragraph 5
5. Expresses concernHighlights that large abmout the high levels of debt and government deficits within the Member States and the risks that this entails; notes that the situation is worse in the euro area than in non-euro area Member States; looks forward to the outcome of the Commission’s legislative proposals onnts of public investment are necessary to equally promote the energy and digital transitions and to maintain basic public services and capital; Stresses that governments’ budgetary decisions shall respond to the current full set of social challenges and needs; Calls for the revisingon of the EU’s economic governance rules and welcomes the ECB’sto accommodate such opintion in this regards;
Amendment 83 #
Motion for a resolution
Paragraph 5 a (new)
Paragraph 5 a (new)
5a. Stresses that the sustainability of sovereign debts cannot only be assessed thought its stock, but also through other factors, such as affordability, composition, dynamic, origin, government financial assets or fiscal risks; Stresses that the support of the European Central Bank is a crucial factor;
Amendment 89 #
Motion for a resolution
Paragraph 7
Paragraph 7
Amendment 99 #
Motion for a resolution
Paragraph 8
Paragraph 8
8. Echoes President Lagarde’s warning that fiscal support should be targeted and limited and should not hinder the task of monetary policy; points out that governments, as well as the Commission, can support citizens and industries not only through fiscal measures, but also by focusing on growth- enhancing reformRegrets that the structural supply- side factors explaining the origin of the current inflationary crisis were not yet fully tackled, namely the large market power of energy fossil companies; Highlights the long term solution calls for productive investment on green sources of energy and regrets that the current tightening of monetary policy hinders such investment, both public and private; Stresses that renewable energy sectors have been hit particularly hard with the increase of interest rates;
Amendment 110 #
Motion for a resolution
Paragraph 9
Paragraph 9
Amendment 117 #
Motion for a resolution
Paragraph 10
Paragraph 10
10. Notes that headline inflation has come down from 8.4 % in 2022 to 5.46 % in 2023, stresses this reduction is mainly driven by lower energy prices and the easing of supply bottlenecks; observes, however, that inflation remains well above the target level of 2 %; is concerned about second-round effects;
Amendment 125 #
Motion for a resolution
Paragraph 11
Paragraph 11
11. Expresses its uneasiness with the persistently high rate of core inflation; understands that wage growth is expected to remain more than double its historical average, driven by inflation compensation and the tight labour market; encourages the ECB, furthermore, to look into and report on the inflationary effect of the green transition and highlights the remarkable inefficiency of traditional monetary policy tools; stresses that unitary profits have grown faster than unitary labour costs;
Amendment 129 #
Motion for a resolution
Paragraph 12
Paragraph 12
12. Points outNotes that inflation already began slowly rising above target levels in 2021, thus before due to commodity prices; notes that Russia’s unprovoked aggression in Ukraine; deplores, however, that the ECB only started to tackle inflation in June 2022, even though the COVID-19 crisis proved that it is able to act in a timely manner; notes that other central banks acted more promptly contributed to an increase of such tendency; welcomes that the ECB did not resort to a restrictive monetary policy straight away, however, regrets the fast pace taken from June 2022 onwards;
Amendment 137 #
Motion for a resolution
Paragraph 13
Paragraph 13
13. Fully supports President Lagarde’s statement on fighting inflation for as long as necessary; applauds President Lagarde’s plea for humility and to regularly update the ECB’s models; invites the ECB, however, to fundamentally review its models and their role in its policymakingStresses that consistent errors of prediction by ECB’s models;
Amendment 147 #
Motion for a resolution
Paragraph 14
Paragraph 14
14. Trusts that the ECB will deliver on its mandate toCalls the European Parliament, the European Commission and the Council to change the mandate of ECB to not only include the safeguard of price stability; notes that real interest rates are still negative but also to promote full- employment as a primary goal;
Amendment 152 #
Motion for a resolution
Paragraph 15
Paragraph 15
15. Notes the inflation target level of 2 % in the medium term; observes that inflation has, thus far, either been well below or far above this target level; qQuestions the scientific evidence for this 2 % target level, as well as the meaning of ‘medium term’; invites the ECB to look into a more qualitative approach to price stability;
Amendment 161 #
Motion for a resolution
Paragraph 16
Paragraph 16
16. SupportCondemns the ECB’s decision to scale back its asset-purchasing programmes, in view of the excess liquidity in the market; notes the ECB’s announcement to decarbonise its corporate bond holdings by ‘tilting’ it; stresses that sovereign spreads are raising significantly and penalizing once more peripheral Member States; regrets the fiscal conditionalities linked to TPI and calls pfortfolio; stresses the importance of the quality of the collateral a permanent asset-purchasing facility;
Amendment 193 #
Motion for a resolution
Paragraph 17 a (new)
Paragraph 17 a (new)
17a. Highlights that the private banking sector is registering significant windfall profits due to the difference between DFT and TLTRO, as well as the severe market concentration of this sector; Condemns the ECB’s position against taxing such windfall profits; Stresses that a growing number of countries is taxing such profits, namely Czech Republic, France, Italy, Germany, Hungary, Lithuania, Spain, Sweden and United Kingdom;
Amendment 199 #
Motion for a resolution
Paragraph 18 a (new)
Paragraph 18 a (new)
18a. Calls the ECB to monitor the risks of contagion between crypto-assets and the traditional financial system; Reiterates the concerns expressed by Elizabeth McCaul, Member of the Supervisory Board of the ECB, on April 20232a _________________ 2a https://www.bankingsupervision.europa.e u/press/blog/2023/html/ssm.blog230405~0 3fd3d664f.en.html
Amendment 205 #
Motion for a resolution
Paragraph 19
Paragraph 19
19. Takes note of the ECB’s progress on the digital euro project and welcomes its dialogue with Parliament in this regard; reiterates that a digital euro must respect competition in the banking landscape, mustbe inclusive, not endanger the existence or use of cash and must respect the privacy of citizens and businesses;
Amendment 227 #
Motion for a resolution
Paragraph 23 a (new)
Paragraph 23 a (new)
23a. Regrets that ECB overlooked the European Parliament’s appointment of the Chair of the Supervisory Board of the European Central Bank;