2022/2037(INI) | [ParlTrack]

Caroline NAGTEGAAL, Nicola BEER, Engin EROGLU, Eva Maria POPTCHEVA, Olivier CHASTEL, Georgios KYRTSOS

Motion for a resolution
Citation 1 a (new)

— having regard the ECB Study on the payment attitudes of consumers in the euro area (SPACE) of December 2020,

Amendment 10 #

Motion for a resolution
Citation 10

— having regard to Articles 123(1), 125, 127(1) and (2), 130, 282(2) and 284(3) of the Treaty on the Functioning of the European Union,

Amendment 100 #

Margarida MARQUES, Evelyn REGNER, Aurore LALUCQ, Marek BELKA, Marc ANGEL, René REPASI, Jonás FERNÁNDEZ, Csaba MOLNÁR, Pedro SILVA PEREIRA, Costas MAVRIDES, Joachim SCHUSTER

Motion for a resolution
Paragraph 5 d (new)

5 d. Calls on the ECB to explore ways of strengthening the international role of the euro; notes that making the euro more attractive as a reserve currency will further enhance its international use; stresses that the creation of a well- designed European safe asset could facilitate financial integration and help mitigate the negative feedback loops between sovereigns and the domestic banking sectors; Underlines that strengthening the role of the euro requires the deepening and completion of the European economic and monetary union, including the creation of instruments of the nature of Next Generation EU, which enhance the EU budget;

Amendment 101 #

Caroline NAGTEGAAL, Nicola BEER, Engin EROGLU, Georgios KYRTSOS

Motion for a resolution
Paragraph 6

~~6. Echoes President Lagarde’s call for a swift revision and simplification of the Stability and Growth Pact;~~deleted

Amendment 102 #

Motion for a resolution
Paragraph 6

~~6. Echoes President Lagarde’s call for a swift revision and simplification of the Stability and Growth Pact;~~deleted

Amendment 103 #

Motion for a resolution
Paragraph 6

~~6. Echoes President Lagarde’s call for a swift revision and simplification of the Stability and Growth Pact;~~deleted

Amendment 104 #

Motion for a resolution
Paragraph 6

~~6. Echoes President Lagarde’s call for a swift revision and simplification of the Stability and Growth Pact;~~deleted

Amendment 105 #

Motion for a resolution
Paragraph 6

6. ~~Echoes~~Takes note of President Lagarde’s call for a swift revision and simplification of the Stability and Growth Pact; recognizes however the merits of the Stability and Growth Pact in giving Member States clarity with respect to its fiscal policies; deplores that the suspension of the budgetary framework risks causing harmful effects to the internal market;

Amendment 106 #

Margarida MARQUES, Aurore LALUCQ, Marek BELKA, Marc ANGEL, René REPASI, Jonás FERNÁNDEZ, Csaba MOLNÁR, Pedro SILVA PEREIRA, Costas MAVRIDES, Joachim SCHUSTER

Motion for a resolution
Paragraph 6

6. Echoes President Lagarde’s call for a swift revision and simplification of the Stability and Growth Pact; Recalls that the upcoming revision of the economic governance framework has to provide the EU with stable, transparent, credible and flexible rules that could be implemented and respected by all Member States. Recalls that fiscal rules are essential for the proper functioning of the EU and should be respected. Recalls that rules should be applied in an intelligent way and within a flexible framework that adapts quickly to changes with the proper democratic accountability. The new framework should promote growth and ensure a better balance between sustainability and stabilisation. Notes that the new Transmission Protection Instrument (TPI) is now linked with the EU fiscal rules and its activation requires sustainable economic policies and compliance with the EU fiscal framework;

Amendment 107 #

Motion for a resolution
Paragraph 6

6. Echoes President Lagarde’s call for a swift revision and simplification of the Stability and Growth Pact, making the most of the justified extension of the general escape clause as a window of opportunity for a lively, structured, in- depth debate about economic governance in the euro area;

Amendment 108 #

Motion for a resolution
Paragraph 6

6. Echoes President Lagarde’s call for a swift revision and simplification of the Stability and Growth Pact; calls for the new framework to consider the extensive public investment needed for the energy transition, also to avoid the extreme price volatility deriving from Europe’s dependence on fossil fuels;

Amendment 109 #

Motion for a resolution
Paragraph 6 a (new)

6a. Emphasises, regarding the necessary revision of the Growth and Stability Pact, the need to provide considerable flexibility for the adoption of economic policies appropriate for dealing with extraordinary situations – such as public health crises and conflicts in border areas – balanced with strict standards for meeting long-term economic objectives, such as the progressive and structural reduction of public debt based on a principle of intergenerational solidarity;

Amendment 11 #

Motion for a resolution
Citation 10

— having regard to Articles 123, 127(1) and (2), 130 and 284(3) of the Treaty on the Functioning of the European Union,

Amendment 110 #

Motion for a resolution
Paragraph 6 a (new)

6 a. Welcomes Chief Economist Philip Lane's statement about taxing the wealthy and overprofits; recalls that both contributions would be temporary and would support households and consumers in this energy crisis;

Amendment 111 #

Motion for a resolution
Paragraph 7

7. Is ~~alarm~~concerned that euro area inflation has continued to rise and has reached undesirably high levels; stresses that headline inflation rose to a record 9.1 % in August 2022; stresses that energy is by far the most significant driver of inflation (38.3 %), followed by food prices (10.6 %);

Amendment 112 #

7. Is alarmed that euro area inflation has continued to rise and has reached ~~undesirably high~~record levels; stresses that headline inflation rose to a record 9.10 % in ~~August~~September 2022; stresses that energy is by far the most significant driver of inflation ~~(38.3~~40.8 %), followed by food prices (1~~0.6 %);~~ 1.8 %)1a; notes with concern that core inflation is also significantly above target; _________________ 1a Eurostat Flash Estimate September 2022 https://ec.europa.eu/eurostat/documents/2 995521/14698140/2-30092022-AP- EN.pdf/727d4958-dd57-de9f-9965- 99562e1286bf#:~:text=Euro%20area%20 annual%20inflation%20is,office%20of%2 0the%20European%20Union.

Amendment 113 #

Margarida MARQUES, Marek BELKA, Marc ANGEL, René REPASI, Jonás FERNÁNDEZ, Csaba MOLNÁR, Pedro SILVA PEREIRA, Costas MAVRIDES

Motion for a resolution
Paragraph 7

7. Is alarmed that euro area inflation has continued to rise and has reached undesirably high levels; stresses that headline inflation rose to a record 9.1 % in August 2022; stresses that energy is by far the most significant driver of inflation (38.3 %), followed by food prices (10.6 %); Notes that ECB forecasts an headline inflation of 8% in 2022, 5,5% in 2023 and 2,8% in 2024, with risks on the upside due to disruptions in the supply of energy;

Amendment 114 #

Motion for a resolution
Paragraph 7

7. Is alarmed that euro area inflation has continued to rise and has reached undesirably high levels; stresses that headline inflation rose to a record ~~9.1~~ 10% in ~~August~~September 2022; stresses that energy is by far the most significant driver of inflation ~~(38.3 %)~~, followed by food prices ~~(10.6 %)~~;

Amendment 115 #

Eva Maria POPTCHEVA, Stéphanie YON-COURTIN, Gilles BOYER, Olivier CHASTEL

Motion for a resolution
Paragraph 7 a (new)

7 a. Recalls that fossil fuels are responsible for much of the recent strong increase in prices, with headline inflation reflecting the sharp rise in oil and gas prices; emphasises that the current bout of inflation is widely recognised as a supply-side phenomenon, making monetary policy tools unsuited to drive down inflation; welcomes repeated acknowledgements by the ECB that raising interest rates will not bring down energy prices nor will it impact inflation in the short term;

Amendment 116 #

Motion for a resolution
Paragraph 7 a (new)

7 a. is gravely concerned about the risk of fragmentation given the divergences in inflation levels among Euro-area countries, from Estonia´s 25,2% to France´s 6,6% in August 20221a; believes this imperils the singleness of the ECB´s monetary policy and its transmission system; reiterates the need for sound economic and fiscal policies and to deliver on structural reforms to foster convergence; _________________ 1a https://www.ecb.europa.eu/stats/macroeco nomic_and_sectoral/hicp/html/index.en.ht ml

Amendment 117 #

Motion for a resolution
Paragraph 7 a (new)

7a. Believes that there is no longer any evidence that could support short- term, cyclical inflation; notes that the ECB’s desire to green its policy is structurally inflationary;

Amendment 118 #

Motion for a resolution
Paragraph 7 a (new)

7a. Recalls that, in the context of imported inflation largely caused by rising energy prices, an increase in interest rates is ineffective in moderating inflation;

Amendment 119 #

Motion for a resolution
Paragraph 7 a (new)

7 a. Notes that President Lagarde stated that the ECB's monetary policy will be set with one goal in mind: to deliver on the price stability mandate1a; _________________ 1a https://www.ecb.europa.eu/press/key/date/ 2022/html/ecb.sp220920~c3afc1a441.en.h tml

Amendment 12 #

Motion for a resolution
Citation 10

— having regard to Articles 123, 127(1) and (2), 130 and 284(3) of the Treaty on the Functioning of the European Union,

Amendment 120 #

Motion for a resolution
Paragraph 7 b (new)

7 b. Is concerned that profits in the energy and food sectors have markedly risen as a key contributor to inflation, with the average quarterly contribution of profits to inflation standing at 15% in 2022, compared with 2.5% in 2018, 5% in 2019 and 4% in 2020; calls on the ECB to regularly publish the data on the contribution of profits to inflation, as is done with wages; questions whether any monetary policy response could address the market powers of such price-setters, unlike tax and competition policy;

Amendment 121 #

Caroline NAGTEGAAL, Nicola BEER, Engin EROGLU, Olivier CHASTEL, Georgios KYRTSOS

Motion for a resolution
Paragraph 8

8. ~~Takes note of~~Regrets recent ECB monetary policy decisions to raise rates by 50 and 75 basis points in July and September 2022; is concerned about the implications of such policy decisions for growth and employment; calls on the ECB to revert the rise in interest rates and to take the necessary actions to ensure low interest rates in the Euro Area;

Amendment 122 #

Motion for a resolution
Paragraph 8

8. ~~Takes note of~~Welcomes recent ECB monetary policy decisions to raise rates by 50 and 75 basis points in July and September 2022; ~~is concerned about the implications of such policy decisions for growth and employment;~~ notes that inflation is currently much higher than the ECB’s target rate of 2%; encourages the ECB to take all measures necessary to bring inflation back to its target level; regrets in this regard that monetary policy is still accommodative;

Amendment 123 #

Motion for a resolution
Paragraph 8

8. ~~Takes note of~~Welcomes the ECB's recent ~~ECB~~ monetary policy decisions to raise rates by 50 and 75 basis points in July and September 2022~~; is concerned about the implications of such policy decisions for growth and employment~~ respectively; notes however that the ECB's monetary policy stance overall is still accommodative and highlights that further rate rises are necessary in order to slow down inflation;

Amendment 124 #

Motion for a resolution
Paragraph 8

Amendment 125 #

Motion for a resolution
Paragraph 8

8. Takes note of recent ECB monetary policy decisions to raise rates by 50 and 75 basis points in July and September 2022; is concerned about the ~~implications of such policy decisions for growth and employment~~pace at which the ECB took these policy decisions in comparison with other central banks;

Amendment 126 #

Motion for a resolution
Paragraph 8

8. Takes note of recent ECB monetary policy decisions to raise rates by 50 and 75 basis points in July and September 2022; is concerned ~~about the implications of such policy decisions for growth and employment~~however that ECB’s monetary policy is still in an accommodative mode;

Amendment 127 #

Motion for a resolution
Paragraph 8

8. Takes note of recent ECB monetary policy decisions to raise rates by 50 and 75 basis points in July and September 2022~~; is concerned about the implications of such policy decisions for growth and employment~~ and of the ECB's communicated expectation to raise interest rates further over the next several meetings;

Amendment 128 #

Margarida MARQUES, Evelyn REGNER, Marc ANGEL, René REPASI, Jonás FERNÁNDEZ, Csaba MOLNÁR, Pedro SILVA PEREIRA, Costas MAVRIDES

Motion for a resolution
Paragraph 8

8. Takes note of recent ECB monetary policy decisions to raise rates by 50 and 75 basis points in July and September 2022; is concerned about the implications of such policy decisions for growth and employment; Calls for a reflection of a more balanced and gradual adjustment of policy instead of a large and fast upfront tightening. Notes that latest economic and financial indicators point that EU economy is likely heading towards a worse than expected recession with the risk of a wide negative social impact with only moderate effect on the inflation rate. Calls for a more insight update and justification of the future policy rate decisions, given the current situation and high level of uncertainty;

Amendment 129 #

Motion for a resolution
Paragraph 8

8. Takes note of recent ECB monetary policy decisions to raise rates by 50 and 75 basis points in July and September 2022; is concerned about the implications of such policy decisions for growth and employment; notes that earlier policy tightening by the ECB would not have been likely to prevent an energy price driven inflationary episode;

Amendment 13 #

— having regard to the monetary dialogues with the President of the ECB, Christine Lagarde, of 7 February, 20 June, 26 September 2022,

Amendment 130 #

Motion for a resolution
Paragraph 8 a (new)

8 a. Welcomes President Lagarde's statement that the ECB intends "to raise interest rates further over the next several meetings to dampen demand and guard against the risk of a persistent upward shift in inflation expectations."1a _________________ 1a Introductory Remarks to the Monetary Dialogue of 26 September 2022 https://www.ecb.europa.eu/press/key/date/ 2022/html/ecb.sp220926_1~0bd6fcc86c.en .html

Amendment 131 #

Motion for a resolution
Paragraph 8 a (new)

8 a. Without prejudice of its independence, calls on the ECB to keep up the determination to raise interest rates as long as the ECB's forecasts remain unchanged while taking the proportionality assessment into account;

Amendment 132 #

Motion for a resolution
Paragraph 8 a (new)

8a. Regrets the errors of judgement made by the ECB, which now force it to carry out cyclical measures and thus potentially exacerbate the recession;

Amendment 133 #

Motion for a resolution
Paragraph 8 b (new)

8 b. Calls on the ECB to develop a credible communication strategy backed up by swift and tangible action to convince European citizens that the ECB means business fighting inflation;

Amendment 134 #

Motion for a resolution
Paragraph 8 b (new)

8 b. Further calls on ECB has to develop a credible communication strategy backed up by swift and tangible action to convince European citizens that the ECB means business fighting inflation;

Amendment 135 #

Motion for a resolution
Paragraph 8 c (new)

8 c. Is deeply concerned that consumers' inflation expectations over the next 12 months and the median expectation for inflation three years ahead are considerably above target level at 5.0% and 3.0% respectively.1a; notes with concern that this hints at inflation expectations becoming de-anchored; therefore calls on the ECB to step up its commitment to reassure markets and consumers alike; _________________ 1a ECB Consumer Expectations Survey results – August 2022 https://www.ecb.europa.eu/press/pr/date/2 022/html/ecb.pr221007~1399021100.en.ht ml

Amendment 136 #

Motion for a resolution
Paragraph 8 c (new)

8 c. Is particularly concerned that the recent decline in the euro/dollar exchange rate has become a major contributor to energy price inflation. In order to prevent a further deterioration of the Euro’s external value, the ECB needs to act in lockstep with other large central banks, in particular the Federal Reserve;

Amendment 137 #

Motion for a resolution
Paragraph 9

9. Observes that there is ~~little~~ evidence that rising inflation is spurring a wage-price spiral~~, not least given the extent of wage restraint in recent years~~;

Amendment 138 #

Motion for a resolution
Paragraph 9

9. ~~Observes that there is little evidence that rising inflation is spurring a wage-price spiral, not least given the extent of wage restraint in recent years~~Warns of a wage-price spiral when inflation expectations and therefore wages are increasing extensively;

Amendment 139 #

Motion for a resolution
Paragraph 9

9. ~~Observ~~Notes that ~~there is little evidence that rising inflation is spurring a wage-price spiral, not least given the extent of wage restraint in recent years~~resilient labour markets and some catch-up to compensate for high inflation are likely to push up wage growth, risking spurring a wage-price spiral;

Amendment 14 #

Motion for a resolution
Citation 12 b (new)

— having regard to the ECB Governing Council approval of the Transmission Protection Instrument (TPI) on 21 July 2022,

Amendment 140 #

Caroline NAGTEGAAL, Nicola BEER, Eva Maria POPTCHEVA, Olivier CHASTEL, Georgios KYRTSOS

Motion for a resolution
Paragraph 9

9. Observes that there is little evidence that rising inflation is spurring a wage-price spiral, not least given the extent of wage restraint in recent years; Notes that resilient labour markets and some catch-up to compensate for loss of purchasing power are likely to contribute to strong wage growth, risking spurring a wage-price spiral; calls on the ECB to monitor this risk very closely;

Amendment 141 #

Motion for a resolution
Paragraph 9

9. Observes that there is little evidence that rising inflation is spurring a wage-price spiral, not least given the extent of wage restraint in recent years; warns against the danger of a wage-price spiral if wages are to increase significantly;

Amendment 142 #

Margarida MARQUES, Paul TANG, Evelyn REGNER, Marc ANGEL, René REPASI, Jonás FERNÁNDEZ, Csaba MOLNÁR, Pedro SILVA PEREIRA, Costas MAVRIDES, Joachim SCHUSTER

Motion for a resolution
Paragraph 9

9. Observes that there is little evidence that rising inflation is spurring a wage-price spiral, not least given the extent of wage restraint in recent years; Notes that the IMF, in its 2022 World Economic Outlook, concluded that, on average, the risks of a wage spiral are limited, so far. Notes that IMF underlines that three main drivers are containing the risks: the shocks to inflation are coming from outside the labor market, falling real wages are helping to reduce price pressures, and central banks are aggressively tightening monetary policy;

Amendment 143 #

Motion for a resolution
Paragraph 9

9. Observes that there is little evidence that rising inflation is spurring a wage-price spiral, not least given the extent of wage restraint in recent years; highlights that, according to the ECB Survey of Professional Forecasters (SPF) for the third quarter of 2022, HICP inflation expectations remain well- anchored at 2.1%for 2024 and at 2.2% for 2027; is concerned about the widening gap between prices and wage growth, which is leading to a sharp decrease in real wages;

Amendment 144 #

Motion for a resolution
Paragraph 9

9. Observes that there is little evidence that rising inflation is spurring a wage-price spiral, not least given the extent of wage restraint ~~in recent year~~and the decline in unionization in recent years; recalls that real wages have been falling substantially over the last months in Euro Area countries;

Amendment 145 #

Motion for a resolution
Paragraph 9

9. Observes that there is little evidence that rising inflation is spurring a wage-price spiral, not least given the extent of wage restraint in recent years; notes that for the second quarter on 2022, the growth of negotiated wage settlements came in at only 2.1 per cent;

Amendment 146 #

Motion for a resolution
Paragraph 9 a (new)

9 a. Notes the lack of empirical evidence for the role of inflation expectations in inflation outcomes, let alone self-fulfilling spiral; notes that influencing inflation expectations is given as one of the main reasons for the rate hikes by the ECB; calls on the ECB to further look into the role of inflation expectations and how they are influenced by ECB’s announcements and action;

Amendment 147 #

Motion for a resolution
Paragraph 9 a (new)

9 a. Notes that the analysis4a carried out by the ECB itself has shown that the rise in profits, not wages, has beenone of the key factors in the current inflationary period; _________________ 4a Isabel Schnabel, “The Globalisation of Inflation”.https://www.ecb.europa.eu/pres s/key/date/2022/html/ecb.sp220511_1~e9b a02e127.en.html

Amendment 148 #

Motion for a resolution
Paragraph 9 b (new)

9 b. Regrets that the ECB has justified its decision to raise interest rates with the argument that “many are worried that price increases are here to stay”5a,despite the fact that there is no supporting evidence on the role of expectations in influencing current inflation and there is no academic consensus on this issue; _________________ 5a ECB Explainer: https://www.ecb.europa.eu/ecb/educationa l/explainers/tell-me- more/html/interest_rates.en.html

Amendment 149 #

Motion for a resolution
Paragraph 10

10. Recalls that the ECB strategy review reconfirmed the medium-term orientation of inflation targeting; ~~calls on the ECB to faithfully target this medium- term horizon~~regrets that this review did not encompass the definition of a double mandate for the central bank to keep price stability and promote full employment, following the example of comparable economic areas such as the US;

Amendment 15 #

Motion for a resolution
Citation 12 c (new)

— having regard to the ECB Governing Council monetary policy decisions to raise ECB interest rates on 21 July and 8 September 2022,

Amendment 150 #

Motion for a resolution
Paragraph 10

10. Recalls that the ECB ~~strategy review reconfirmed the medium-term orientation of inflation targeting~~monetary policy strategy review has set symmetric 2% inflation target over medium term; calls on the ECB to faithfully target this medium- term horizon;

Amendment 151 #

Motion for a resolution
Paragraph 10

10. Recalls that the ECB strategy review reconfirmed the medium-term orientation of inflation targeting~~; calls on the ECB to faithfully target this~~ with a symmetric medium- term ~~horizon~~target of 2%;

Amendment 152 #

Motion for a resolution
Paragraph 10

10. Recalls that the ECB strategy review reconfirmed the medium-term orientation of inflation targeting; calls on the ECB to faithfully target this medium- term horizon; is concerned that following a long and careful debate on the ECB’s new monetary policy strategy, in this moment of crisis the goalposts risk shifting rather rapidly, with a sudden shift to targeting current inflation rather than the medium-term horizon that inflation targeting is thought to influence;

Amendment 153 #

Motion for a resolution
Paragraph 10

10. Recalls that the ECB strategy review reconfirmed the medium-term orientation of inflation targeting; calls on the ECB to faithfully target this medium- term horizon; believes that the absence of a definition of "medium-term" and the lack of an arithmetic reference complicate the interpretation of the deviations from the medium-term target; notes that the medium-term orientation of the monetary policy strategy allows for inevitable short- term deviations of inflation from the target;

Amendment 154 #

Margarida MARQUES, Alfred SANT, Marek BELKA, Marc ANGEL, René REPASI, Jonás FERNÁNDEZ, Csaba MOLNÁR, Pedro SILVA PEREIRA, Costas MAVRIDES

Motion for a resolution
Paragraph 10

10. Recalls that the ECB strategy review reconfirmed the medium-term orientation of inflation targeting; calls on the ECB to faithfully target this medium- term horizon; Calls on the ECB to monitor attentively price developments and its consequences. Highlights the need to inform about where neutral interest rate is setting;

Amendment 155 #

Motion for a resolution
Paragraph 10

10. Recalls that the ECB strategy review reconfirmed the medium-term orientation of inflation targeting; calls on the ECB to faithfully target this medium- term horizon; invites the ECB to define the concept of "medium term";

Amendment 156 #

Motion for a resolution
Paragraph 10 a (new)

10 a. Is concerned about the ECB’s continued reliance on third party sovereign bond ratings in its collateral framework, in spite of repeated calls to end this risky practice; calls on the ECB to change collateral eligibility requirements so as to remove this power from private credit rating agencies;

Amendment 157 #

Motion for a resolution
Paragraph 11

~~11. Welcomes the ECB’s decision not to engage in quantitative tightening;~~deleted

Amendment 158 #

Caroline NAGTEGAAL, Nicola BEER, Engin EROGLU, Eva Maria POPTCHEVA, Georgios KYRTSOS

Motion for a resolution
Paragraph 11

11. ~~Welcom~~Deplores the ECB’s decision not to engage in quantitative tightening;

Amendment 159 #

Motion for a resolution
Paragraph 11

11. ~~Welcome~~Regrets the ECB’s decision not to engage in quantitative tightening; stresses that quantitative easing amounts economically to monetary financing, which is prohibited by article 123(1) TFEU, if the ECB does not shrink back its balance sheet;

Amendment 16 #

Motion for a resolution
Citation 12 d (new)

— having regard to the ECB’s report on the progress made during the investigation phase of a digital euro published on 29 September 2022,

Amendment 160 #

Motion for a resolution
Paragraph 11

11. ~~Welcomes~~Is concerned about the size of the ECB’'s ~~decision not to engage in quantitative tightening~~balance sheet, which has increased exponentially in recent years; notes that all maturing assets under the Asset Purchase Programme (APP) and the Pandemic Emergency Purchase Programme (PEPP) are still being reinvested, thereby not reducing the ECB's balance sheet; recalls that quantitative tightening is needed to normalise monetary policy;

Amendment 161 #

Motion for a resolution
Paragraph 11

11. ~~Welcomes~~Is alarmed by the ECB’s decision not to engage in quantitative tightening;

Amendment 162 #

Motion for a resolution
Paragraph 11

11. ~~Welcom~~Notes the ECB’s decision not to engage in quantitative tightening;

Amendment 163 #

Motion for a resolution
Paragraph 11

11. Welcomes the ECB’s decision not to ~~engage in quantitative tightening~~discontinue pandemic emergency purchase programme;

Amendment 164 #

Motion for a resolution
Paragraph 11

11. Welcomes the ECB’s decision not to engage in quantitative tightening; calls on the ECB to keep this line to avoid putting further pressure on sovereign bond markets;

Amendment 165 #

Paul TANG, Aurore LALUCQ, Csaba MOLNÁR

Motion for a resolution
Paragraph 11 a (new)

11 a. Notes the ECB president's concern highlighted during her hearing in the ECON committee on 26 September that only 15 to 20% of support measures in the context of the energy crisis are tailored and targeted, meaning most support measures are inflationary; highlights that government support should be better targeted by raising taxation on the rich and profitable companies; strongly supports in this context ECB chief economist Philip Lane who argues that governments should tax the rich to help the victims of the energy crisis1a; _________________ 1a https://www.ft.com/content/5e1f616e- 8cc4-4678-9bc7-3a6616742b07

Amendment 166 #

Motion for a resolution
Paragraph 11 a (new)

11 a. Call to discontinue reaming elements of the forward looking guidance of the monetary policy stance;

Amendment 167 #

Motion for a resolution
Paragraph 12

12. Stresses that a~~n even~~ proper transmission of monetary policy is vital to the achievement of the ECB’s price stability mandate; notes the ECB’s decision on 15 June 2022 to apply flexibility in reinvesting redemptions that are due under the pandemic emergency purchase programme; ~~welcomes the launch~~questions the legality and necessity of the Transmission Protection Instrument as an instrument to support the effective transmission of monetary policy across the euro area; reminds the ECB that it already has the Outright Monetary Transactions instrument in its toolbox, which has a similar objective and which to date has never been used;

Amendment 168 #

Motion for a resolution
Paragraph 12

12. Stresses that an even transmission of monetary policy is vital to the achievement of the ECB’s price stability mandate; ~~notes~~is alarmed by the ECB’s decision on 15 June 2022 to apply flexibility in reinvesting redemptions that are due under the pandemic emergency purchase programme; welcomes the launch of the Transmission Protection Instrument to support the effective transmission of monetary policy across the euro area; insists that the ECB has to follow the market neutrality principle;

Amendment 169 #

Caroline NAGTEGAAL, Nicola BEER, Engin EROGLU, Eva Maria POPTCHEVA, Georgios KYRTSOS

Motion for a resolution
Paragraph 12

Amendment 17 #

Margarida MARQUES, Aurore LALUCQ, Marek BELKA, Marc ANGEL, René REPASI, Jonás FERNÁNDEZ, Csaba MOLNÁR, Pedro SILVA PEREIRA, Costas MAVRIDES, Joachim SCHUSTER

Motion for a resolution
Citation 13 a (new)

— having regard the European Parliament resolution of 19 May 2022 on the social and economic consequences for the EU of the Russian war in Ukraine – reinforcing the EU’s capacity to act (2022/2653(RSP)),

Amendment 170 #

Motion for a resolution
Paragraph 12

Amendment 171 #

Motion for a resolution
Paragraph 12

12. Stresses that an even transmission of monetary policy is vital to the achievement of the ECB’s price stability mandate; notes the ECB’s decision on 15 June 2022 to apply flexibility in reinvesting redemptions that are due under the pandemic emergency purchase programme; ~~welcomes~~takes note of the launch of the Transmission Protection Instrument to support the effective transmission of monetary policy across the euro area; regrets that the use of this instrument is subject to a discretionary evaluation of each Member-States public finances by the central bank, as well as to the compliance with current fiscal rules laid down in the SGP, which can have counterproductive effects in terms of debt sustainability;

Amendment 172 #

Motion for a resolution
Paragraph 12

12. Stresses that an even transmission of monetary policy is vital to the achievement of the ECB’s price stability mandate; notes the ECB’s decision on 15 June 2022 to apply flexibility in reinvesting redemptions that are due under the pandemic emergency purchase programme; ~~welcomes~~notes that, with the launch of the Transmission Protection Instrument, t~~o support the effective transmission of monetary policy across the euro area~~he ECB has gained more flexibility for raising interest rates; calls on the ECB to make good use of this flexibility;

Amendment 173 #

Motion for a resolution
Paragraph 12

12. Stresses that an even transmission of monetary policy is vital to the achievement of the ECB’s price stability mandate; notes the ECB’s decision on 15 June 2022 to apply flexibility in reinvesting redemptions that are due under the pandemic emergency purchase programme; ~~welcomes~~takes note that, with the launch of the Transmission Protection Instrument, t~~o support the effective transmission of monetary policy across the euro area~~he ECB created more flexible conditions for raising interest rates;

Amendment 174 #

Eva Maria POPTCHEVA, Stéphanie YON-COURTIN, Gilles BOYER, Olivier CHASTEL

Motion for a resolution
Paragraph 12

12. Stresses that an even transmission of monetary policy is vital to the achievement of the ECB’s price stability mandate; ~~not~~underlines that excessive divergence in sovereign yields makes credit conditions inconsistent with the uniform transmission of monetary policy and could cause financial instability; welcomes the ECB’s decision on 15 June 2022 to apply flexibility in reinvesting redemptions that are due under the pandemic emergency purchase programme; welcomes the launch of the Transmission Protection Instrument to support the effective transmission of monetary policy across the euro area;

Amendment 175 #

Margarida MARQUES, Aurore LALUCQ, Marek BELKA, Marc ANGEL, René REPASI, Jonás FERNÁNDEZ, Csaba MOLNÁR, Costas MAVRIDES, Joachim SCHUSTER

12. Stresses that an even transmission of monetary policy is vital to the achievement of the ECB’s price stability mandate; ~~not~~Welcomes the ECB’s decision on 15 June 2022 to apply flexibility in reinvesting redemptions that are due under the pandemic emergency purchase programme; welcomes the launch of the Transmission Protection Instrument to ECB´s toolkit to support the effective transmission of monetary policy across the euro area and normalise the monetary policy; Notes that compliance with the EU fiscal framework is pre-requisite for TPI´s activation; Calls on ECB to take into account that the general escape clause is activated; Calls for a more clear TPI´s framework and rules of procedure when the general escape clause is activated;

Amendment 176 #

Motion for a resolution
Paragraph 12 a (new)

12 a. Recalls 15 June 2022´s Monetary Dialogue in which President Lagarde confirmed that the Outright-Monetary Transactions (OMT) programme is still part of the ECB´s toolbox1a; recalls that President Draghi unveiled the OMT programme as part of its much-celebrated "whatever it takes" speech; believes that the OMT is still the better backstop for our single currency, providing adequate conditionality by way of promoting sound economic and fiscal policies; _________________ 1a You can find President Lagarde´s words by following this link, around the 20:30 marker: https://multimedia.europarl.europa.eu/en/ video/monetary-dialogue-with-christine- lagarde-president-of-the-european- central-bank-exchange-of-views_I227310

Amendment 177 #

Caroline NAGTEGAAL, Nicola BEER, Engin EROGLU, Eva Maria POPTCHEVA, Georgios KYRTSOS

Motion for a resolution
Paragraph 12 a (new)

12 a. Regrets the launch of the Transmission Protection Instrument; calls on the ECB to respect the spirit of the prohibition of monetary financing; calls on the ECB to respect the capital key when executing its monetary operations in order to prevent uneven financial support to Member States;

Amendment 178 #

Motion for a resolution
Paragraph 12 a (new)

12 a. Notes that, the concept of market neutrality is related to the principle of ‘an open market economy with free competition; notes that the ECB has already deviated from market neutrality in several instances;

Amendment 179 #

Caroline NAGTEGAAL, Nicola BEER, Engin EROGLU, Georgios KYRTSOS

Motion for a resolution
Paragraph 12 a (new)

12 a. Regrets the excessive reliance of the ECB on credit rating agencies for the conduct of its monetary policy, which is known to be a source of instability and could exacerbate the risk of fragmentation;

Amendment 18 #

Margarida MARQUES, Alfred SANT, Paul TANG, Aurore LALUCQ, Marek BELKA, Marc ANGEL, René REPASI, Jonás FERNÁNDEZ, Csaba MOLNÁR, Pedro SILVA PEREIRA, Costas MAVRIDES, Joachim SCHUSTER

Motion for a resolution
Citation 13 b (new)

— having regard the European Pillar of Social Rights,

Amendment 180 #

Motion for a resolution
Paragraph 12 b (new)

12 b. Stresses that diverging interest rates in the eurozone are the result of increasing risk premia on government bonds in some Member States; stresses that the Transmission Protection Instrument would merely conceal the symptoms of loose fiscal policy; calls on Member States to conduct fiscally responsible fiscal policies and reduce their debt to sustainable levels;

Amendment 181 #

Motion for a resolution
Paragraph 13

13. Notes with concern that the combination of cheap targeted longer-term refinancing operations (TLTROs) and higher interest rates allow European banks to earn billions in extra profit; regrets the fact that the ECB has not yet addressed this issue and urges the ECB to do so as a matter of urgency; stresses that it is unacceptable for the ECB to provide banks with a taxpayer-backed profit while it is raising borrowing costs for households and businesses and most commercial lenders are paying bonuses to staff and distributing dividends to investors;

Amendment 182 #

Motion for a resolution
Paragraph 13

13. Notes with concern that the combination of cheap targeted longer-term refinancing operations (TLTROs) and higher interest rates allow European banks to earn billions in extra profit, which may amount to 24 billion until 20246a; regrets the fact that the ECB has not yet addressed this issue; and calls on the central bank to quickly close this loophole; _________________ 6a Calculations by Morgan Stanley analysts, quoted by Financial Times (https://www.ft.com/content/5ce8f458- 8a59-4789-820a-8c59ed67f416)

Amendment 183 #

Margarida MARQUES, Paul TANG, Aurore LALUCQ, Marc ANGEL, René REPASI, Csaba MOLNÁR, Costas MAVRIDES, Joachim SCHUSTER

Motion for a resolution
Paragraph 13

13. Notes with concern that the combination of cheap targeted longer-term refinancing operations (TLTROs) and higher interest rates allow European banks to earn billions in extra profit~~; regrets the fact that the ECB has not yet addressed this issue~~ and the risk of generating another “excess profit” case in EU with damaging social impact ; regrets the fact that the ECB has not yet addressed this issue and calls for concrete proposals to prevent excess profits in the banking system;

Amendment 184 #

Motion for a resolution
Paragraph 13

13. Notes with concern that the combination of c~~heap~~urrent targeted longer- term refinancing operations (TLTROs) and higher interest rates allow European banks to e~~arn billions in extra profit; regrets the fact that the ECB has not yet addressed this issue~~nter into arbitrage; Calls on ECB to closely monitor situation of the reserve remuneration and ensure that the balance between costs and benefits remain positive and banks continue financing real economy;

Amendment 185 #

Motion for a resolution
Paragraph 13

13. Notes with concern that the combination of cheap targeted longer-term refinancing operations (TLTROs) and higher interest rates allow ~~European banks to earn bill~~s for arbitrage transactions; in ~~extra profit; regrets the fact that the ECB has not yet addressed~~vites the ECB to look into this issue;

Amendment 186 #

Motion for a resolution
Paragraph 13 a (new)

13 a. Worries about lack of monetary policy coordination among central banks around the world and a resulting global over-reaction to inflation as simultaneous rate hikes add up to unprecedented tightening; warns that monetary tightening during a worldwide stagflation can result in a beggar-thy-neighbour policy, as it may export inflation to trade partners, pushing foreign central banks to further tighten; calls on the ECB to initiate international coordination with other central banks to prevent excessive aggregate tightening of global monetary conditions;

Amendment 187 #

Motion for a resolution
Paragraph 13 a (new)

13a. Recalls that, in the absence of a European fiscal policy, the ECB, the EU’s only truly federal actor, is put in an untenable position, as it is called upon both to pursue its objectives of price stability and to act against inflation, while combating a widening of spreads and protecting the economy and employment; stresses the importance, in this context, of having, at European level, own resources and an ambitious fiscal policy in order to support the ECB in these tasks;

Amendment 188 #

Margarida MARQUES, Alfred SANT, Marek BELKA, Marc ANGEL, René REPASI, Jonás FERNÁNDEZ, Csaba MOLNÁR, Pedro SILVA PEREIRA, Costas MAVRIDES

Motion for a resolution
Paragraph 13 a (new)

13 a. Calls on the lessons learned from the ongoing and previous crises to prepare for the upcoming assessment of monetary policy strategy in 2025. Calls for an earlier assessment, if possible, given the extraordinary impact of the current crisis on the future of monetary policy making and ECB mandate. Reflects on the commitment to symmetry, if price stability is best maintained by aiming for 2% inflation over the medium term and the challenges of monetary policy when disruptive supply side driven inflation is at stake;

Amendment 189 #

Motion for a resolution
Paragraph 13 a (new)

13 a. Welcomes the ECB’s progress on the digital euro project, as well as the dialogue with Parliament in this regard; looks forward to the end of 24-month investigation phase of a digital euro project and Governing Council reaching a decision on start process of launching the digital euro; recalls that cash payments are a very important means of payment for EU citizens and should not be endangered by a digital euro;

Amendment 19 #

Motion for a resolution
Recital A

A. whereas according to the ECB baseline projections of September 2022, economic growth will decline from 3.1 % in 2022 to 0.9 % in 2023, before recovering to 2.3 % in 2024; whereas certain core assumptions of that forecast are already outdated; whereas the outlook for euro area activity is surrounded by a high degree of uncertainty, related to the development of the war in Ukraine and the energy crisis, with a number of independent forecasts predicting a recession;

Amendment 190 #

Motion for a resolution
Paragraph 13 a (new)

13 a. Notes that, the concept of market neutrality is related to the principle of an open market economy with free competition; deplores that the ECB has already deviated from market neutrality in several instances; calls on the ECB to respect the principle of market neutrality going forward;

Amendment 191 #

Motion for a resolution
Paragraph 13 a (new)

13a. Recalls the need to hold further debate about the digital euro and take real steps towards implementing a central bank digital currency, drawing on the opportunities offered by the smart, responsible use of new technologies;

Amendment 192 #

Motion for a resolution
Paragraph 13 a (new)

13 a. Calls on the ECB to monitor the single currency’s external value and its interaction with other developed economies;

Amendment 193 #

Motion for a resolution
Subheading 3

~~Secondary objectives~~deleted

Amendment 194 #

Motion for a resolution
Subheading 3

~~Secondary objectives~~deleted

Amendment 195 #

Motion for a resolution
Subheading 3

~~Secondary~~Other objectives

Amendment 196 #

Motion for a resolution
Paragraph 14

14. Recalls that ~~the Treaty on the Functioning of the European Union requires the ECB to support the general economic policies of the Union~~, without prejudice to the objective of price stability, the ECB shall support the general economic policies in the Union with a view to contributing to the achievement of the objectives of the Union as laid down in Article 3 of the Treaty on European Union; points out that there is a clear hierarchy between the ECB's objectives and that during times of inflation above target level, a particular focus should be put on achieving the ECB's primary monetary policy objectives;

Amendment 197 #

Caroline NAGTEGAAL, Nicola BEER, Engin EROGLU, Eva Maria POPTCHEVA, Olivier CHASTEL, Georgios KYRTSOS

Motion for a resolution
Paragraph 14

14. Recalls that ~~the Treaty on the Functioning of the European Union requires~~, without prejudice to the objective of price stability, the ECB toshall support the general economic policies ~~of the~~in the Union with a view to contributing to the achievement of the objectives of the Union as laid down in Article 3 of the Treaty on European Union;

Amendment 198 #

Motion for a resolution
Paragraph 14

14. Recalls that the Treaty on the Functioning of the European Union ~~requires~~states that the ECB toshall support the general economic policies of the Union, without prejudice to its primary objective of maintaining price stability;

Amendment 199 #

Motion for a resolution
Paragraph 14

14. Recalls that, with respect to the statutory independence of the ECB, the Treaty on the Functioning of the European Union requires the ECB to support the general economic policies of the Union as a secondary objective;

Amendment 2 #

Motion for a resolution
Citation 3

~~— having regard to the ECB climate action plan of 4 July 2022 to further incorporate climate change into its monetary policy operations,~~deleted

Amendment 20 #

Motion for a resolution
Recital A

A. whereas according to the ECB projections of September 2022, economic growth will decline from 3.1 % in 2022 to 0.9 % in 2023, before recovering to 2.3 % in 2024; whereas the outlook for euro area activity is surrounded by a high degree of heterogeneity across countries and uncertainty, related to the development of the war in Ukraine and the energy crisis, with a number of independent forecasts predicting a recession;

Amendment 200 #

Motion for a resolution
Paragraph 14

14. Recalls that the Treaty on the Functioning of the European Union requires the ECB to support the general economic policies of the Union as long as they do not undermine its primary mandate;

Amendment 201 #

Margarida MARQUES, Paul TANG, Aurore LALUCQ, Marek BELKA, Marc ANGEL, René REPASI, Jonás FERNÁNDEZ, Csaba MOLNÁR, Pedro SILVA PEREIRA, Costas MAVRIDES, Joachim SCHUSTER

Motion for a resolution
Paragraph 14

14. Recalls that the Treaty on the Functioning of the European Union requires the ECB to support the general economic policies of the Union; which include balanced and sustainable economic growth, highly competitive social market economy aiming at full employment and social progress and convergences and a high level of protection and improvement of the quality of the environment, underlines that sustainable development, convergence, full employment and social progress are general objectives of the Union as defined in Article 3 of the TFEU;

Amendment 202 #

Motion for a resolution
Paragraph 15

15. Calls on the ECB to coordinate with the European Parliament to specify the secondary objectives; suggests taking advantage of this resolution to specify and prioritise the policy areas where the ECB is expected to deliver on its secondary objectives;deleted

Amendment 203 #

Caroline NAGTEGAAL, Nicola BEER, Engin EROGLU, Eva Maria POPTCHEVA, Georgios KYRTSOS

Motion for a resolution
Paragraph 15

Amendment 204 #

Motion for a resolution
Paragraph 15

Amendment 205 #

Motion for a resolution
Paragraph 15

Amendment 206 #

Motion for a resolution
Paragraph 15

15. Calls on the ECB to ~~coordinate with the European Parliament to specify the secondary objectives; suggests taking advantage of this resolution to specify and prioritise the policy areas where the ECB is expected~~deliver on its primary objective, as this will enable the ECB to deliver on its secondary objectives as well;

Amendment 207 #

Motion for a resolution
Paragraph 15

15. CRecalls on the ECB to coordinate with the European Parliament to specify the secondary objectives; suggests taking advantage of this resolution to specify and prioritise the policy areas where the ECB is expected to deliver onthat according to Article 127 TFEU, the secondary objectives are "without prejudice to the objective of price stability"; and reminds that price stability its ~~secondary objectives~~far from being reached;

Amendment 208 #

Motion for a resolution
Paragraph 15

15. Calls on the ECB to coordinate with the European Parliament to specify othe ~~secondary objectives~~r equally important objectives, such as the promotion of full employment; suggests taking advantage of this resolution to specify and prioritise the policy areas where the ECB is expected to deliver on ~~its secondary~~these objectives;

Amendment 209 #

Motion for a resolution
Paragraph 15

15. ~~Calls on the ECB to coordinate with the European Parliament to specify the secondary objectives; suggests taking advantage of this resolution to specify and prioritise~~Suggests taking advantage of this resolution to formulate the European Parliament’s interpretation of the policy areas where the ECB is expected to provide medium-term support on the basis of its secondary objectives; invites the ECB to further exchange with the Parliament to identify the extent to which these policy areas ~~where the ECB is expected to deliver on its secondary objectiv~~are relevant and how they could be integrated in the ECB’s monetary policies;

Amendment 21 #

Motion for a resolution
Recital A

A. whereas according to the ECB projections of September 2022, economic growth will decline from 3.1 % in 2022 to 0.9 % in 2023, before recovering to ~~2.3~~1.9 % in 2024 in the baseline scenario; whereas the outlook for euro area activity is surrounded by a high degree of uncertainty, related to the development of the war in Ukraine and the energy crisis, with a number of independent forecasts predicting a recession;

Amendment 210 #

Motion for a resolution
Paragraph 15

15. Calls on the ECB to coordinate with the European Parliament to specify ~~the~~and how to implement the ECB´s secondary objectives; suggests taking advantage of this resolution to specify and prioritise the policy areas where the ECB is expected to deliver on the basis of its secondary objectives; calls on the ECB to elaborate in its Annual Report the impact its monetary policy may have had on the general economic policies of the Union; and how the ECB has integrated the Parliament's views on the secondary objectives in its decision making process;

Amendment 211 #

Margarida MARQUES, Aurore LALUCQ, Marek BELKA, Marc ANGEL, René REPASI, Jonás FERNÁNDEZ, Csaba MOLNÁR, Pedro SILVA PEREIRA, Costas MAVRIDES, Joachim SCHUSTER

Motion for a resolution
Paragraph 15

Amendment 212 #

Motion for a resolution
Paragraph 15

Amendment 213 #

15. Calls on the ECB to coordinate with the European Parliament and the Council to specify the secondary objectives; suggests taking advantage of this resolution to specify and prioritise the policy areas where the ECB is expected to deliver on its secondary objectives;

Amendment 214 #

Motion for a resolution
Paragraph 15 a (new)

15 a. Calls on the ECB to clarify in its Annual Report how it interpreted and acted upon its secondary objectives, as well as presenting the side effects of its monetary policy on the EU general economic policies; proposes to refocus the quarterly “monetary dialogues” hearings with the ECB President to carry out regular checks on the delivery of the secondary objectives;

Amendment 215 #

Motion for a resolution
Paragraph 16

~~16. Considers high levels of sustainable growth and investment to be key economic goals; calls on the ECB to consider how its monetary policy stance will impact those objectives;~~deleted

Amendment 216 #

Motion for a resolution
Paragraph 16

16. Considers high levels of sustainable growth and investment to be key economic goals; ~~calls on the ECB to consider how its monetary policy stance will impact those objectives;~~

Amendment 217 #

Caroline NAGTEGAAL, Nicola BEER, Engin EROGLU, Eva Maria POPTCHEVA, Olivier CHASTEL, Georgios KYRTSOS

Motion for a resolution
Paragraph 16

16. C~~onsiders high levels of sustainable growth and investment to be key economic goals; c~~alls on the ECB to consider how its monetary policy stance will impact those objectives;

Amendment 218 #

Motion for a resolution
Paragraph 16

16. Considers high levels of sustainable growth and investment to be key economic goals; ~~calls on the ECB to consider how its monetary policy stance will impact tho~~stresses that these objectives are best achieved when the free market operates in a stable macroeconomic environment based o~~bjecti~~n predictable price levels;

Amendment 219 #

Motion for a resolution
Paragraph 16

16. Considers high levels of sustainable growth and investment to be key economic goals; ~~calls on the ECB to consider how its monetary policy stance will impact those objectives~~observes that years of low interest rates doped the economy;

Amendment 22 #

Motion for a resolution
Recital A

A. whereas according to the ECB base line projections of September 2022, economic growth will decline from 3.1 % in 2022 to 0.9 % in 2023, before recovering to 2.3 % in 2024; whereas the outlook for euro area activity is surrounded by a high degree of uncertainty, related to the development of the war in Ukraine and the energy crisis, with a number of independent forecasts predicting a recession;

Amendment 220 #

Motion for a resolution
Paragraph 16

16. Considers high levels of socially and environmentally sustainable growth and investment to be key economic goals; calls on the ECB to consider how its monetary policy stance will impact those objectives;

Amendment 221 #

Margarida MARQUES, Alfred SANT, Marc ANGEL, René REPASI, Jonás FERNÁNDEZ, Csaba MOLNÁR, Pedro SILVA PEREIRA, Costas MAVRIDES, Joachim SCHUSTER

Motion for a resolution
Paragraph 16 a (new)

16 a. Highlights that investments needed to enhance EU´s autonomy in strategic sectors should be supported by the monetary policy and are key to protect EU from external shocks and reduce the risks for price stability from supply-side shocks;

Amendment 222 #

Margarida MARQUES, Alfred SANT, Paul TANG, Evelyn REGNER, Aurore LALUCQ, Marek BELKA, Marc ANGEL, René REPASI, Jonás FERNÁNDEZ, Csaba MOLNÁR, Pedro SILVA PEREIRA, Costas MAVRIDES, Joachim SCHUSTER

Motion for a resolution
Paragraph 16 b (new)

16 b. Recalls for the important role of ECB in supporting the implementation of the European Pillar of Social Rights;

Amendment 223 #

Motion for a resolution
Paragraph 17

17. Underlines the pivotal role of the private sector in general and small and medium-sized enterprises (SMEs) specifically in the EU’s economy ~~and economic and social convergence and employment~~;

Amendment 224 #

Motion for a resolution
Paragraph 17

17. Underlines the pivotal role of small and medium-sized enterprises (SMEs) infor the EU’s economy and ~~economic and social convergence and~~for employment;

Amendment 225 #

Motion for a resolution
Paragraph 17

17. Underlines the pivotal role of small and medium-sized enterprises (SMEs) in the EU’s economy and economic and social convergence and employment; points out the need to encourage public and private investments in the EU, and therefore calls on the ECB to continue its efforts to facilitate access to finance for SMEs;

Amendment 226 #

Motion for a resolution
Paragraph 17

17. Underlines the pivotal role of small and medium-sized enterprises (SMEs) in the EU’s economy and economic and social convergence and employment; is especially concerned about the effect that the COVID-19 pandemic and the Russian war of aggression in Ukraine have on SMEs;

Amendment 227 #

Margarida MARQUES, Alfred SANT, Marek BELKA, Marc ANGEL, René REPASI, Jonás FERNÁNDEZ, Csaba MOLNÁR, Pedro SILVA PEREIRA, Costas MAVRIDES, Joachim SCHUSTER

Motion for a resolution
Paragraph 17

17. Underlines the pivotal role of small and medium-sized enterprises (SMEs) in the EU’s economy and economic and social convergence and employment and for the implementation of the twin transitions (digital and climate);

Amendment 228 #

Motion for a resolution
Paragraph 17

17. Underlines the pivotal role of small and medium-sized enterprises (SMEs) in the EU’s economy and economic and social convergence and employment, which has to be given particular attention in its proportionality assessment;

Amendment 229 #

Motion for a resolution
Paragraph 18

~~18. Reaffirms that achieving the Union’s climate goals and ensuring a just transition are the top priorities of the EU’s general economic policies, which the ECB is expected to support;~~deleted

Amendment 23 #

Motion for a resolution
Recital A

A. whereas according to the ECB projections of September 2022, economic growth will decline from 3.1 % in 2022 to 0.9 % in 2023, before recovering to 2.3 % in 2024; whereas the outlook for euro area activity is surrounded by a high degree of uncertainty, related to the development of the war in Ukraine, inflation and the energy crisis, with a number of independent forecasts predicting a recession;

Amendment 230 #

Motion for a resolution
Paragraph 18

Amendment 231 #

Motion for a resolution
Paragraph 18

Amendment 232 #

Caroline NAGTEGAAL, Nicola BEER, Engin EROGLU, Eva Maria POPTCHEVA, Olivier CHASTEL, Georgios KYRTSOS

Motion for a resolution
Paragraph 18

18. Reaffirms that ~~achieving~~ the Union’s climate goals and ensuring a just transition are ~~the top priorities~~one of the many of the EU’s general economic policies, which the ECB is expected to support;

Amendment 233 #

Motion for a resolution
Paragraph 18

18. Reaffirms that achieving the Union’s climate goals and ensuring a just transition are one of the top priorities of the EU’s general economic policies, which the ECB is expected to support through maintaining price stability and a stable macroeconomic environment that stimulates investment in clean technologies, as well as preventing distortions in the signalling function of prices that ensures an efficient allocation of resources;

Amendment 234 #

Motion for a resolution
Paragraph 18

18. Reaffirms that achieving the Union’s climate goals and ensuring a just transition are the top priorities of the EU’s general economic policies, which the ECB is expected to support; welcomes that the ECB is committed to supporting the green transition; recalls that this requires massive investments, a goal the ECB is well placed to support;

Amendment 235 #

Motion for a resolution
Paragraph 19

Amendment 236 #

Caroline NAGTEGAAL, Nicola BEER, Engin EROGLU, Georgios KYRTSOS

Motion for a resolution
Paragraph 19

Amendment 237 #

Motion for a resolution
Paragraph 19

19. Considers that the ECB should contribute to reducing inequality; calls on the ECB to ensure that the costs of its monetary policy operations are not disproportionately borne by lower income strata; invites the ECB to assess the effects of italls on the ECB to refrain from taking politically motivated decisions and stick to its mandate of maintaining price stability; stresses that overstepping this mandate touches mon~~etary policy decisions on employment~~ the political independence of the central bank;

Amendment 238 #

Motion for a resolution
Paragraph 19

19. C~~onsiders that the ECB should contribute to reducing inequality; c~~alls on the ECB to ensure that the costs of its monetary policy operations ~~are~~do not disproportionately b~~orne by low~~enefit higher income strata; invites the ECB to properly assess the effects of its monetary policy decisions ~~on employment~~;

Amendment 239 #

Margarida MARQUES, Paul TANG, Aurore LALUCQ, Marek BELKA, Marc ANGEL, René REPASI, Jonás FERNÁNDEZ, Csaba MOLNÁR, Pedro SILVA PEREIRA, Costas MAVRIDES

Motion for a resolution
Paragraph 19

19. Considers that the ECB should contribute to reducing inequality; calls on the ECB to ensure that the costs of its monetary policy operations are not disproportionately borne by lower income strata; ~~invites the ECB to assess the effects of its monetary policy decisions on employment~~Calls for an assessment on the impact of the monetary policy decisions on these most vulnerable groups; invites the ECB to assess the effects of its monetary policy decisions on employment; Notes that the ECB strategy review showed that adverse events lower the consumption of poorer households more than that of richer ones, that takes longer for the employment prospects of poorer households to recover following such events and that keeping monetary policy expansionary for longer can help poorer households’ income to rise to higher levels in a more sustained manner and thereby avoid hysteresis;

Amendment 24 #

Motion for a resolution
Recital B

B. whereas Russia’s unprovoked, immoral and unjustified aggression against Ukraine, which is illegal from the point of view of international law, has severely hit confidence, caused energy and food prices to soar and, in conjunction with other supply-side disruptions in China, compounded existing supply chain pressures that had been felt since mid- 2021;

Amendment 240 #

Motion for a resolution
Paragraph 19

19. Considers that the ECB should contribute to reducing inequality; calls on the ECB to ensure that the costs of its monetary policy operations are not disproportionately borne by lower income strata, also considering that wealth and income inequality negatively affect the effectiveness of monetary policy transmission; invites the ECB to assess the effects of its monetary policy decisions on employment;

Amendment 241 #

Motion for a resolution
Paragraph 19 a (new)

19a. Considers that, in order to address the systemic risk posed by the climate crisis to financial assets and therefore, ultimately, to the banking and financial system and to the economy as a whole, the ECB should impose stricter prudential rules on systemic banks to ensure that they have the necessary capital to deal with a collapse in the value of their assets; proposes, therefore, that the risk weight for banks’ exposures to existing fossil fuel reserves be calibrated at 150 % and that the risk weight for banks’ exposures to new fossil fuel reserves be set at 1 250 %, so that they are financed solely from own funds;

Amendment 242 #

Motion for a resolution
Paragraph 19 a (new)

19 a. Calls on the ECB to better integrate the secondary mandate considerations when implementing, executing and explaining its monetary policy, increasing transparency by reporting on its interpretation and incorporation of its secondary mandate during press conferences and in its annual report to Parliament; and by systematically offering proportionality analysis of the side effects on areas of economic policy that pertain to the ECB's secondary objective;

Amendment 243 #

Motion for a resolution
Paragraph 19 a (new)

19 a. Is concerned about the implications of higher interest rates on debt sustainability in the Euro Area; notes that public debt spreads for the Euro Area Southern periphery are again on the rise; calls on the ECB to halt the current trajectory and keep low interest rates so as to avoid another euro crisis;

Amendment 244 #

Motion for a resolution
Paragraph 20

Amendment 245 #

Caroline NAGTEGAAL, Nicola BEER, Engin EROGLU, Eva Maria POPTCHEVA, Olivier CHASTEL, Georgios KYRTSOS

Motion for a resolution
Paragraph 20

20. Stresses that ~~addressing the climate emergency and the euro area’s dependence on fossil fuel~~the energy policies of the last decade fuels greenflation and thus touches not only upon the ECB’s secondary mandate, but also its primary mandate, given the serious threat these issues pose to price stability;

Amendment 246 #

Motion for a resolution
Paragraph 20

20. Stresses that addressing the climate emergency and the euro area’s dependence on fossil fuels touches not only upon the ECB’s secondary mandate, but also its primary mandate, given the serious threat these issues pose tothe best way the ECB can contribute to mitigating climate change is to ensure price stability and a stable macroeconomic environment that encourages green investment; invites the ECB to assess to what extent climate change affects its ability to maintain price stability;

Amendment 247 #

Motion for a resolution
Paragraph 20

20. ~~Stresses that addressing the climate emergency an~~Considers that maintaining price stability could the ~~eur~~lp to acrea~~’s dependence on fossil fuels touches no~~te the right con~~ly upon the ECB’s secondary mandate, but also its primary mandate, given the serious threat these issues pose to price stability~~ditions for the implementation of the Paris Agreement;

Amendment 248 #

Motion for a resolution
Paragraph 20

20. ~~Stresses that addressing the climate emergency an~~Considers that maintaining price stability could the ~~eur~~lp to acrea~~’s dependence~~ te the right conditions fo~~ssil fuels touches not only upon the ECB’s secondary mandate, but also its primary mandate, given the serious threat these issues pose to price stability~~r the implementation of the EU's other policy objectives, such as the implementation of the Paris Agreement;

Amendment 249 #

Motion for a resolution
Paragraph 20

20. Stresses that addressing the climate emergency and the euro area’s dependence on fossil fuels touches not only upon the ECB’s secondary mandate, but also its primary mandate, given the serious threat these issues pose to price stability; underlines that high fossil fuel prices are the major responsible for the recent strong increase in euro area inflation, reflecting “the legacy cost of the dependency on fossil energy sources, which has not been reduced forcefully enough over the past decades”;

Amendment 25 #

Motion for a resolution
Recital B

B. whereas greenflation and Russia’s unprovoked aggression against Ukraine has severely hit confidence, caused energy and food prices to soar and, in conjunction with other supply-side disruptions in China, compounded existing supply chain pressures;

Amendment 250 #

Motion for a resolution
Paragraph 20

Amendment 251 #

Margarida MARQUES, Paul TANG, Evelyn REGNER, Aurore LALUCQ, Marc ANGEL, René REPASI, Jonás FERNÁNDEZ, Csaba MOLNÁR, Pedro SILVA PEREIRA, Costas MAVRIDES

Motion for a resolution
Paragraph 20

20. Highlights the ECB role to finance the climate transition and green agendas. Stresses that addressing the climate emergency and the euro area’s dependence on fossil fuels touches not only upon the ECB’s secondary mandate, but also its primary mandate, given the serious threat these issues pose to price stability;

Amendment 252 #

Motion for a resolution
Paragraph 20 a (new)

20 a. Recalls that the ECB, as an EU institution, is bound by the EU’s commitments under the Paris Agreement; emphasises that this requires an integrated approach reflected in all its policies, decisions and operations, in line with its mandate of supporting the general economic policies of the Union, in this case, the achievement of a climate-neutral economy by 2050, as outlined in the European Climate Law;

Amendment 253 #

Motion for a resolution
Paragraph 21

~~21. Welcomes the Governing Council’s decision to take further steps to include climate change considerations in the Eurosystem’s monetary policy framework;~~deleted

Amendment 254 #

Motion for a resolution
Paragraph 21

21. ~~Welcom~~Notes the Governing Council’s decision to take further steps to include climate change considerations in the Eurosystem’s monetary policy framework; highlights that such decisions must not come at the expense of market neutrality or achieving the ECB's primary objective;

Amendment 255 #

Caroline NAGTEGAAL, Nicola BEER, Engin EROGLU, Eva Maria POPTCHEVA, Georgios KYRTSOS

Motion for a resolution
Paragraph 21

21. ~~Welcom~~Notes the Governing Council’s decision to take further steps to include climate change considerations in the Eurosystem’s monetary policy framework;

Amendment 256 #

Motion for a resolution
Paragraph 21

21. ~~Welcom~~Notes the Governing Council’s decision to take further steps to include climate change considerations in the Eurosystem’s monetary policy framework;

Amendment 257 #

Motion for a resolution
Paragraph 21

21. ~~Welcom~~Notes the Governing Council’s decision to take further steps to include climate change considerations in the Eurosystem’s monetary policy framework;

Amendment 258 #

Motion for a resolution
Paragraph 21

21. Welcomes the Governing Council’s decision to take further steps to include climate change considerations in the Eurosystem’s monetary policy framework, and specifically the decision to overcome the market neutrality principle while embracing carbon neutrality;

Amendment 259 #

Margarida MARQUES, Paul TANG, Evelyn REGNER, Aurore LALUCQ, Marek BELKA, Marc ANGEL, René REPASI, Jonás FERNÁNDEZ, Csaba MOLNÁR, Pedro SILVA PEREIRA, Costas MAVRIDES, Joachim SCHUSTER

Motion for a resolution
Paragraph 21

21. Welcomes the Governing Council’s decision to take further steps to include climate change considerations in the Eurosystem’s monetary policy framework; Welcomes the launch of the scoreboard for green bonds;

Amendment 26 #

Motion for a resolution
Recital B

B. whereas Russia’s ~~unprovoked~~war of aggression against Ukraine has severely hit confidence, caused energy and food prices to soar and, in conjunction with other supply-side disruptions in China, compounded existing supply chain pressures;

Amendment 260 #

Motion for a resolution
Paragraph 22

~~22. Welcomes the ECB’s announcement to decarbonise its corporate bond holdings; calls for the ‘tilting’ of the ECB’s portfolio to be swift rather than gradual;~~deleted

Amendment 261 #

Motion for a resolution
Paragraph 22

22. ~~Welcom~~Notes the ECB’s announcement to decarbonise its corporate bond holdings; calls ~~for~~on the ~~‘tilting’ of the ECB’s portfolio to be swift rather than gradual~~ECB to look into the risk of green asset bubbles and its possible effect on price stability;

Amendment 262 #

Caroline NAGTEGAAL, Nicola BEER, Engin EROGLU, Georgios KYRTSOS

Motion for a resolution
Paragraph 22

22. ~~Welcom~~Notes the ECB’s announcement to decarbonise its corporate bond holdings~~; calls for the~~ by ‘tilting’ of the ECB’'s bond portfolio to ~~be swift rather than gradual~~wards issuers with better climate performance through the reinvestment of the sizeable redemptions expected over the coming years; notes with concern that this decision constitutes a notable deviation from the principle of market neutrality;

Amendment 263 #

Motion for a resolution
Paragraph 22

22. ~~Welcom~~Notes the ECB’s announcement to decarbonise its corporate bond holdings; ~~calls for the ‘tilting’ of the ECB’s portfolio to be swift rather than gradual;~~ stresses that the ECB’s asset purchasing programs constitute unconventional monetary policy which should be employed during unprecedented economic circumstances only; stresses furthermore that these holdings are a by-product of the past fight against low inflation and that making investments does not constitute an objective of monetary policy;

Amendment 264 #

Motion for a resolution
Paragraph 22

22. ~~Welcom~~Notes the ECB’s announcement to ~~decarbonise its corporate bond holdings; calls for the ‘tilting’ of the ECB’s portfolio to be swift rather than gradual~~“tilting”corporate portfolio in ECB’s reinvestment decision in order to better account for the climate change related risks, the level of disclosures by corporates in order to satisfy the secondary objective, which is what all European institutions are pursuing without prejudice to primary objective, which is price stability;

Amendment 265 #

Motion for a resolution
Paragraph 22

22. Welcomes the ECB’s announcement to decarbonise its corporate bond holdings; calls ~~for the ‘tilting’ of the ECB’s portfolio to be swift rather than gradual~~therefore on the reduction of the bond holdings;

Amendment 266 #

Motion for a resolution
Paragraph 22

22. Highlights the ECB’s acknowledgement of the carbon bias in its portfolio and the accumulation of climate risks in its balance sheet; underlines that according to available data, 62.7 % of ECB corporate bond purchases take place in the sectors that are responsible for 54.8 % of euro area greenhouse gas emissions; Welcomes the ECB’s announcement to decarbonise its corporate bond holdings; calls for the ‘tilting’ of the ECB’s portfolio to be swift rather than gradual, especially considering that it will apply only to reinvestment of maturing corporate bonds, accounting to around 10% of corporate bond holdings;

Amendment 267 #

Motion for a resolution
Paragraph 23

Amendment 268 #

Motion for a resolution
Paragraph 23

23. ~~Welcomes, furthermore,~~Takes note of the announcement on the greening of the ECB’s collateral framework; ~~regrets, however, that this will be limited to instruments issued by non-financial corporations, which represent only a small fraction of the instruments that banks pledge as collateral;~~

Amendment 269 #

Motion for a resolution
Paragraph 23

23. ~~Welcomes, furthermore,~~Notes the announcement on the greening of the ECB’s collateral framework; re~~grets, however, that this will be limited to instruments issued by non-financial corporations, which represent only a small fraction of~~ calls that the Central Bank is not an investment bank and that it is not its role to favour one asset over another in~~struments that banks pledge as collateral~~ order to steer the market;

Amendment 27 #

Caroline NAGTEGAAL, Nicola BEER, Engin EROGLU, Eva Maria POPTCHEVA, Georgios KYRTSOS

Motion for a resolution
Recital C

C. whereas according to the ECB projections of September 2022, headline inflation is expected to fall from 8.1 % in 2022 to 2.3 % in 2024; whereas this means that headline inflation is expected to remain above the 2% target in the medium-term, even though the ECB's projections lately have structurally underestimated the inflation rates;

Amendment 270 #

Motion for a resolution
Paragraph 23

~~23. Welcom~~Notes, furthermore, the ~~23.~~ announcement on the greening of the ECB’s collateral framework; ~~regrets, however, that this will be limited to instruments issued by non-financial corporations, which represent only a small fraction of the instruments that banks pledge as collateral~~insist that the ECB respects the market neutrality principle;

Amendment 271 #

Motion for a resolution
Paragraph 23

23. ~~Welcomes, furthermore, the announcement on the greening of the ECB’s collateral framework; regrets, however, that this will be~~ Notes that the Eurosystem will take into account a climiate~~d to instruments issued by non-financial~~ score of issuers in all purchases of corporatie bonds, ~~which represent only a small fraction of the instruments that banks pledge as collateral~~in the context of the Eurosystem's ongoing reinvestment purchases;

Amendment 272 #

Motion for a resolution
Paragraph 23

23. Welcomes, furthermore, the announcement on the greening of the ECB’s collateral framework; regrets, however, that this will be limited to instruments issued by non-financial corporations, which represent only a small fraction of the instruments that banks pledge as collateral; stresses that the lack of climate disclosure requirements for covered bonds in EU legislation represents an obstacle for the ECB to further green its collateral framework; calls on the ECB to require climate disclosure for covered bonds in its eligibility framework pending legislative change;

Amendment 273 #

Paul TANG, Aurore LALUCQ, Csaba MOLNÁR, Pedro SILVA PEREIRA

Motion for a resolution
Paragraph 23 a (new)

23 a. Warns against the Eurosystem over-reliance on external credit rating agencies for climate and environmental risk assessment; Welcomes the ECB’s announcement to further enhance the Eurosystem’s risk assessment tools and capabilities to better include climate and environment related risks, such as through their in-house credit assessment systems; welcomes in particular the ECB’s engagement with rating agencies to increase transparency on how they incorporate climate risks into their ratings and their ambition on disclosure requirements on climate risks;

Amendment 274 #

Motion for a resolution
Paragraph 23 a (new)

23 a. Calls on the ECB to make maximum use of the forthcoming European Green Bond Standard by prioritizing the purchasing of such green bonds;

Amendment 275 #

Motion for a resolution
Paragraph 24

Amendment 276 #

Motion for a resolution
Paragraph 24

Amendment 277 #

Caroline NAGTEGAAL, Nicola BEER, Engin EROGLU, Eva Maria POPTCHEVA, Georgios KYRTSOS

Motion for a resolution
Paragraph 24

24. ~~Regret~~Understands that the climate roadmap does not include greening of the ECB’s targeted long-term refinancing operations; stresses that ~~providing cheap liquidity to financial institu~~diversifications in~~vesting in brown activities works against the fight against inflation and is not~~ energy sources works against inflation and could perfectly be consistent with the objectives of the Paris Agreement;

Amendment 278 #

Motion for a resolution
Paragraph 24

24. ~~Regret~~Notes that the climate roadmap does not include greening of the ECB’s targeted long-term refinancing operations; stresses that ~~providing cheap liquidity to financial institutions investing in brown activities works against the fight against inflation and is not consistent with the objectives of the Paris Agreement~~its independence requires refraining from taking political decisions such as diverging from the market neutrality principle; notes, furthermore, that the concept of market neutrality is related to the principle of an open market economy with free competition;

Amendment 279 #

24. Regrets that the climate roadmap does not include greening of the ECB’s targeted long-term refinancing operations; stresses that providing cheap liquidity to financial institutions investing in brown activities works against the fight against inflation and is not consistent with the objectives of the Paris AgreementWelcomes the ECB’s action plan and its detailed roadmap of climate change-related actions to further incorporate climate change considerations into its policy framework and models;

Amendment 28 #

Motion for a resolution
Recital C

C. whereas according to the ECB projections of September 2022, headline inflation is expected to fall from 8.1 % in 2022 to 2.3 % in 2024; whereas 2,3% is still above the ECB target rate;

Amendment 280 #

Motion for a resolution
Paragraph 24

24. Regrets that the climate roadmap does not include greening of the ECB’s targeted long-term refinancing operations; stresses that providing cheap liquidity to financial institutions investing in brown activities works against the fight against inflation and is not consistent with the objectives of the Paris Agreement, while offering reduced rates to refinancing operations benefiting renewable energy and energy efficiency would contribute to price stability by reducing risks of a slow and disorderly transition;

Amendment 281 #

Margarida MARQUES, Aurore LALUCQ, Marc ANGEL, René REPASI, Jonás FERNÁNDEZ, Csaba MOLNÁR, Pedro SILVA PEREIRA, Costas MAVRIDES, Joachim SCHUSTER

24. Regrets that the climate roadmap does not include greening of the ECB’s targeted long-term refinancing operations; stresses that providing ~~cheap~~favourable liquidity conditions to financial institutions investing in ~~brown~~carbon intensive activities works against the fight against inflation and is not consistent with the objectives of the Paris Agreement;

Amendment 282 #

Motion for a resolution
Paragraph 25

Amendment 283 #

Nicola BEER

Motion for a resolution
Paragraph 25

Amendment 284 #

Motion for a resolution
Paragraph 25

Amendment 285 #

Motion for a resolution
Paragraph 25

Amendment 286 #

Motion for a resolution
Paragraph 25

Amendment 287 #

Caroline NAGTEGAAL, Eva Maria POPTCHEVA, Georgios KYRTSOS

Motion for a resolution
Paragraph 25

25. ~~Is concerned about the implications of~~Notes the higher interest rates for green investments; calls on the ECB to ~~assess the possibility of applying differentiated rates to support green investments and disincentivise brown investments~~respect the principle of market neutrality;

Amendment 288 #

Motion for a resolution
Paragraph 25

25. Is concerned about the implications of higher interest rates for green investments; ~~calls on the ECB to assess the possibility of applying differentiated rates to support green investments and disincentivise brown investments;~~

Amendment 289 #

Motion for a resolution
Paragraph 25

25. Is concerned about the implications of higher interest rates for green investments; calls on the ECB to assess the possibility of applying differentiated rates to support green investments and disincentivise brown investmentConsiders that measures in pipeline will reduce the Eurosystem’s exposure to climate-related financial risk, as well as support the Green Transition of the economy in line with the EU’s climate neutrality objectives;

Amendment 29 #

Margarida MARQUES, Marek BELKA, Marc ANGEL, René REPASI, Jonás FERNÁNDEZ, Csaba MOLNÁR, Pedro SILVA PEREIRA, Costas MAVRIDES

Motion for a resolution
Recital C

C. whereas according to the ECB projections of September 2022, headline inflation is expected to fall from 8.1 % in 2022, 5,5% in 2023 to 2.3 % in 2024;

Amendment 290 #

Margarida MARQUES, Alfred SANT, Aurore LALUCQ, Marek BELKA, Marc ANGEL, René REPASI, Csaba MOLNÁR, Pedro SILVA PEREIRA, Costas MAVRIDES

Motion for a resolution
Paragraph 25

25. Is concerned about the implications of higher interest rates for ~~green~~strategic and sustainable investments; calls on the ECB to assess the possibility of applying differentiated rates to support ~~green~~ investments ~~and disincentivise brown investment~~that contribute most to reducing inflationary pressures, such as those in energy efficiency and renewables;

Amendment 291 #

Motion for a resolution
Paragraph 25

25. Is concerned about the implications of higher interest rates for green investments; calls on the ECB to assess the possibility of applying ~~differentiated rates~~the most efficient rates possible to support green investments and disincentivise brown investments;

Amendment 292 #

Motion for a resolution
Paragraph 25

25. Is concerned about the implications of higher interest rates for green investments; calls on the ECB to ~~assess the possibility of applying differentiated rates to support green investments and~~monitor the impact of its monetary policy on the cost of climate investments; and to assess the possibility of applying differentiated rates on Taxonomy-aligned investments, notably in energy efficiency, which would help lower inflationary pressure and climate-related volatility on the medium and long term, and overall disincentivise brown investments;

Amendment 293 #

Motion for a resolution
Paragraph 25

25. Is concerned about the implications of higher interest rates for green investments; stresses that rate rises will likely dis-incentivise new green investments that have large upfront costs and thus face higher funding costs, when compared to fossil fuel alternatives with relatively low upfront costs; calls on the ECB to assess the possibility of applying differentiated rates to support green investments and disincentivise brown investments;

Amendment 294 #

Motion for a resolution
Paragraph 25 a (new)

25 a. Welcomes the inclusion of climate change and environmental degradation risks in the supervisory priorities for 2022-2024;

Amendment 295 #

Motion for a resolution
Paragraph 26

26. ~~Welcomes~~Notes that the ECB climate risk stress test aimed at assessing the climate risk preparedness of the European banking sector; is concerned that the results published on 8 July 2022 show that banks do not have robust climate risk stress- testing frameworks and lack the relevant data; calls on the ECB to use all its available tools to ensure that banks take climate risk seriouslynotes that bank supervision should be risk-based and not guided by secondary considerations;

Amendment 296 #

Motion for a resolution
Paragraph 26

26. Welcomes the ECB climate risk stress test aimed at assessing the climate risk preparedness of the European banking sector; ~~is concerned~~observes that the results published on 8 July 2022 show that ~~banks do not~~not all banks have robust climate risk stress- testing frameworks and lack the relevant data; calls on the ECB to ~~use all its available tools to ensure that banks take climate risk seriously~~provide workable guidance and reduce red tape;

Amendment 297 #

Motion for a resolution
Paragraph 26

26. Welcomes the ECB's supervisory climate risk stress test ~~aimed at assessing the climate risk preparedness of the European banking sector; is concerned that the results published on 8 July 2022~~to assess how prepared banks are for dealing with financial and economic shocks stemming from climate risk; Considers that the exercise showed that banks ~~do not have robust~~have made considerable progress with respect to their climate ~~risk~~ stress-testing ~~frameworks and lack the relevant data; calls on the ECB to use all its available tools to ensure that banks take climate risk seriously~~capabilities, while the exercise also revealed many deficiencies, data gaps and inconsistencies across institutions;

Amendment 298 #

Motion for a resolution
Paragraph 26

26. Welcomes the ECB climate risk stress test aimed at assessing the climate risk preparedness of the European banking sector; is concerned that the results published on 8 July 2022 show that banks do not have robust climate risk stress- testing frameworks and lack the relevant data; underlines that banks’ losses are lower in an orderly transition scenario than after delayed action; is worried that the estimated credit and market losses in a disorderly transition scenario dangerously underestimate the actual climate-related risk; underlines that two-thirds of banks’ income from non-financial corporate customers stems from greenhouse gas- intensive industries; stresses that risk concentration in the largest systemically essential banks means we could end up at the too-big-to-fail scenario once climate risks start materialising; calls on banks to urgently step up their efforts to measure and manage climate risk; calls on the ECB to use all its available tools to ensure that banks take climate risk seriously;

Amendment 299 #

Paul TANG, Aurore LALUCQ

26. Welcomes the ECB climate risk stress test aimed at assessing the climate risk preparedness of the European banking sector; is concerned that the results published on 8 July 2022 show that banks do not have robust climate risk stress- testing frameworks and lack the relevant data; ~~calls on the ECB to use all its available tools to ensure that banks take climate risk seriously~~highlights that while the cost of taking action to fight climate change (transition risks) is evenly spread in the EU, the cost of inaction (climate risks) is borne by the warmer EU Member States; calls on the ECB to use all its available tools to ensure that banks take climate risk seriously and highlights specifically transition plans as good tools for this purpose; urges the ECB to make use of its powers to apply additional capital requirements in cases where a bank does not adhere to a climate-law aligned transition plan;

Amendment 3 #

Motion for a resolution
Citation 5

— having regard to Eurostat’s ~~flash estimate~~announcement on the inflation in the euro area for August 2022,

Amendment 30 #

Motion for a resolution
Recital C

C. whereas according to the ECB projections of September 2022, ~~headlin~~average inflation is expected to fall from 8.1 % in 2022 to 2.3 % in 2024;

Amendment 300 #

Caroline NAGTEGAAL, Nicola BEER, Engin EROGLU, Eva Maria POPTCHEVA, Georgios KYRTSOS

Motion for a resolution
Paragraph 26

26. Welcomes the ECB’s economy wide climate ~~risk~~ stress test ~~aim~~developed ato assess~~ing~~ the ~~climate risk preparedness of the European banking sector~~resilience of banks and corporations for climate transition; is concerned that the results published on 8 July 2022 show that banks do not have robust climate risk stress-testing frameworks and lack the relevant data; ~~calls on the ECB to use all its available tools to ensure that banks take climate risk seriously;~~ notes that credit risks tend to be higher for mortgages collateralized with energy-inefficient houses, which could contribute to the build-up of future NPLs; calls on the ECB to use all its available tools to ensure that banks take climate risk seriously including by integrating energy efficiency in their business strategy to prevent these risks to materialize;

Amendment 301 #

Margarida MARQUES, Aurore LALUCQ, Marek BELKA, Marc ANGEL, René REPASI, Jonás FERNÁNDEZ, Csaba MOLNÁR, Pedro SILVA PEREIRA, Costas MAVRIDES, Joachim SCHUSTER

Motion for a resolution
Paragraph 26

Amendment 302 #

Motion for a resolution
Paragraph 26

Amendment 303 #

Motion for a resolution
Paragraph 27

27. Stresses the need to further enhance the ECB’s accountability and transparency arrangements; notes that while the ECB has enlarged its toolbox and objectives taken into account alongside inflation, its accountability practices have not evolved; insists on its call for the ECB to take swift action by codifying existing practices and strengthening its accountability framework vis-a-vis the European Parliament, thus ensuring that its independence goes hand in hand with its accountability; suggests that the new accountability framework includes (1) enhanced self-evaluation by the ECB through the conduct of Impact Assessments of different policy options in the annual report, as well as an independent evaluation office modelled after that of the IMF, (2) better involvement of the EP in Governing Council meetings through attendance of the ECON chair, (3) improve access of MEPs to non-public information that inform the decisions of the Governing Council;

Amendment 304 #

Motion for a resolution
Paragraph 27

27. Stresses the need to further enhance the ECB’s accountability and transparency arrangements; is concerned about the ECB’s lack of responsiveness to the proposal adopted by the Conference of Presidents of the European Parliament for an interinstitutional agreement between Parliament and the ECB; insists on its call for the ECB to take swift action by launching negotiations on a formal interinstitutional agreement as soon as possible, thus ensuring that its independence goes hand in hand with its accountability;

Amendment 305 #

Margarida MARQUES, Alfred SANT, Aurore LALUCQ, Marek BELKA, Marc ANGEL, René REPASI, Csaba MOLNÁR, Pedro SILVA PEREIRA, Costas MAVRIDES, Joachim SCHUSTER

Motion for a resolution
Paragraph 27

27. Stresses the need to further enhance the ECB’s accountability and transparency arrangements; Recognises the steps taken by the ECB; Calls for the relaunch of negotiations on a formal Inter- Institutional agreement, whilst ensuring the ECB’s independence which goes hand in hand with its accountability;

Amendment 306 #

Motion for a resolution
Paragraph 27 a (new)

27 a. Welcomes the substantial and detailed feedback provided by the ECB to Parliament’s resolution on the 2020 ECB Annual Report; calls on the ECB to continue this commitment to accountability and to keep publishing its written feedback on Parliament’s resolutions on the ECB Annual Reports each year;

Amendment 307 #

Motion for a resolution
Paragraph 27 a (new)

27 a. Calls on the ECB to publish all of its decisions, in particular decisions on Emergency Liquidity Assistance in distressed member states, as well as positions taken by the ECB in the Basel Committee of Banking Supervision;

Amendment 308 #

Motion for a resolution
Paragraph 27 a (new)

27 a. Considers that the ECB should devote specific chapters of its annual report to explain how it supports the general economic policies in the EU, namely the promotion of full employment and the fight against climate change;

Amendment 309 #

Motion for a resolution
Paragraph 27 a (new)

27 a. Invites the ECB to engage in a dialogue with national parliaments; believes that this would strengthen the legitimacy and the policies of the ECB;

Amendment 31 #

Motion for a resolution
Recital C a (new)

C a. whereas, according to Eurostat, the unemployment rate in July 2022 stood at 6% in the EU and 6.6% in the euro area, spread in an uneven way across the EU and within Member States and with unemployment rates among young people remaining much higher (14% in the EU and 14,2% in the euro area); whereas the high youth unemployment rate remains a serious issue to be tackled in the EU;

Amendment 310 #

Motion for a resolution
Paragraph 27 b (new)

27 b. Acknowledges the ongoing efforts by the ECB and President Lagarde to improve communication and transparency with Parliament; agrees with President Lagarde, furthermore, that the ECB has to enhance its communication to citizens on the impact of its policies;

Amendment 311 #

27 b. Welcomes the attention the ECB pays to the risks of cyber attacks; encourages the ECB to maintain this attention, especially in light of the geopolitical context;

Amendment 312 #

Motion for a resolution
Paragraph 27 c (new)

27 c. Is concerned about the divergence of TARGET2 balances within the European System of Central Banks;

Amendment 313 #

Motion for a resolution
Paragraph 27 d (new)

27 d. Urges the ECB to be vigilant to an increase of the ratio of non performing loans on bank balance sheets, after a decade of very accommodative monetary policies and two important recent crises in a couple of years, with detrimental effect to the EU economy;

Amendment 314 #

Motion for a resolution
Paragraph 28

28. ~~Regrets~~Takes note of the fact that only two members of the ECB’s Executive Board and Governing Council are women; reiterates that the nominations to the Executive Board should be gender- balanced, with shortlists submitted to Parliament; insists that a job should always be appointed to the best woman or man;

Amendment 315 #

Motion for a resolution
Paragraph 28

28. Regrets that only two members of the ECB’s Executive Board and Governing Council are women; reiterates that the nominations to the Executive Board should be gender-balanced, with shortlists submitted to Parliament; recalls that Parliament is committed not to consider shortlists that do not respect the gender balance principle, in accordance with its resolution on gender balance in EU economic and monetary affairs nominations; calls on the euro area member states to do their part and fully incorporate the principle of gender equality in their appointment processes for the position of governor of national central banks;

Amendment 316 #

Motion for a resolution
Paragraph 29

29. Regrets that the gender imbalance also persists across the organisational structure of the ECB, notably in the share of women in senior management positions, with the share of women in ECB management at 30,3% in 2019, welcomes, the ECB’s new strategy to improve gender balance, including the objective of increasing the share of women to between 40 % and 51 % by 2026;

Amendment 317 #

Motion for a resolution
Paragraph 29

29. Regrets that the gender imbalance also persists across the organisational structure of the ECB, notably in the share of women in senior management positions; notes that the latest available statistics indicate that the share of women in all ECB management positions rose to 30.3 % and in its senior management positions to 30.8 %;

Amendment 318 #

Motion for a resolution
Paragraph 30

30. Takes note of ECB staff rules on potential conflicts of interest and encourages the ambitious application thereof; underlines that the European Ombudsman has opened a case into “revolving doors” at the ECB, after a recent case of a senior economist’s move to an American investment bank; calls on the ECB to extend the cooling-off period foreseen for senior salary tiers also to employees in lower salary bands; calls on the ECB to develop a strategy on how to deal with lobbyists and increase transparency of staff level contacts beyond the Governing Council;

Amendment 319 #

Motion for a resolution
Paragraph 30 a (new)

30 a. Calls on the ECB to explore ways to strengthen the international role of the euro; notes that making the euro more attractive as a reserve currency will further enhance its international use and increase the EU’s ability to frame its policy stance independently, a key element in safeguarding European economic sovereignty;

Amendment 32 #

Motion for a resolution
Recital C a (new)

C a. whereas President Lagarde recently stated that “if the cause [of current inflation] is predominantly supply-driven and based on energy prices that keep rocketing, this is for somebody else to do the job"1a _________________ 1a Press Conference of Christine Lagarde (President of the ECB) and Luis de Guindos (Vice-President of the ECB), 8 September 2022. https://www.ecb.europa.eu/press/presscon f/2022/html/ecb.is220908~cd8363c58e.en. html

Amendment 320 #

Motion for a resolution
Paragraph 30 b (new)

30 b. Welcomes the fact that, in 2021, the number of counterfeit euro banknotes decreased to its lowest level since 2003 (12 parts per million);calls on the ECB to enhance the fight against counterfeiting and its cooperation with Europol, Interpol and the European Commission in pursuit of this goal; invites the ECB, without prejudice to the Member States’ prerogatives, to create a system to better monitor large transactions with a view to combating money laundering, tax evasion and the financing of terrorism and organised crime;

Amendment 321 #

Motion for a resolution
Paragraph 31

Amendment 322 #

Motion for a resolution
Paragraph 31

31. ~~Welcomes~~Takes note of the ECB’s progress on the digital euro project, asyet wel~~l a~~comes the dialogue with Parliament in this regard; ~~looks forward to the Governing Council reaching a decision on launching the digital euro~~underlines that a decision on launching the digital euro should be based on a sound legal basis, must respect competition in the banking landscape, must not endanger the existence or use of cash, must respect the privacy of citizens and business and it should provide a solution to a real problem;

Amendment 323 #

Motion for a resolution
Paragraph 31

31. Welcomes the ECB’s progress on the digital euro project, as well as the dialogue with Parliament in this regard; looks forward to the Governing Council reaching a decision on launching the digital euro; is concerned that the ECB has selected Amazon to collaborate in the sensitive phase of developing a prototype and test its integration with the Amazon interface and infrastructure, a company subject to steep EU fines due to data protection violations; regrets that the ECB has not revised its decision despite the concerns expressed by the civil society as well as in the ECON committee during Mr Panetta’s appearance before it on 29 September 2022;

Amendment 324 #

Margarida MARQUES, Alfred SANT, Paul TANG, Aurore LALUCQ, Marek BELKA, Marc ANGEL, René REPASI, Jonás FERNÁNDEZ, Csaba MOLNÁR, Pedro SILVA PEREIRA, Costas MAVRIDES, Joachim SCHUSTER

Motion for a resolution
Paragraph 31

31. Welcomes the ECB’s progress on the digital euro project, as well as the dialogue with Parliament in this regard; looks forward to the Governing Council reaching a decision on launching the digital euro; Calls on the ECB to effectively address the expectations and concerns on a digital euro which include concerns for privacy, security, usability, low cost and accessibility. Calls on the ECB to step up its monitoring of the development of crypto-currencies and the related risks in terms of cybersecurity, money laundering, terrorism financing and other criminal activities related with the anonymity provided by crypto-assets;

Amendment 325 #

Motion for a resolution
Paragraph 31

31. Welcomes the ECB’s progress on the digital euro project, as well as the dialogue with Parliament in this regard; looks forward to the Governing Council reaching a decision on launching the digital euro; recalls that cash payments are a very important means of payment for EU citizens and should not be endangered by a digital euro;

Amendment 326 #

Caroline NAGTEGAAL, Nicola BEER, Engin EROGLU, Eva Maria POPTCHEVA, Georgios KYRTSOS, Gilles BOYER, Stéphanie YON-COURTIN

Motion for a resolution
Paragraph 31

Amendment 327 #

Motion for a resolution
Paragraph 31

Amendment 328 #

Motion for a resolution
Paragraph 31

31. Welcomes the ECB’s progress on the digital euro project, as well as the dialogue with Parliament in this regard; looks forward to the end of the 24-month investigation phase of the digital euro project and to the Governing Council reaching a decision on the start of the process of launching the digital euro;

Amendment 329 #

Motion for a resolution
Paragraph 31 a (new)

31 a. Agrees with the ECB that a digital Euro would have to satisfy a range of minimal requirements including robustness, safety, efficiency and protection of privacy; stresses that a potential digital Euro can complement, but must not replace cash as a means of payment;

Amendment 33 #

Motion for a resolution
Recital C a (new)

C a. whereas the Euro’s slide against the Dollar is particularly concerning, given that energy derivatives are traded in Dollar and becoming more and more expensive for European wholesale buyers;

Amendment 330 #

Motion for a resolution
Paragraph 31 a (new)

31 a. Welcomes the ECB’s support to complete banking union with a European Deposit Insurance Scheme, as a necessary complement to a single monetary policy to ensure financial stability in the euro area;

Amendment 331 #

Caroline NAGTEGAAL, Nicola BEER, Engin EROGLU, Olivier CHASTEL, Georgios KYRTSOS, Gilles BOYER, Stéphanie YON-COURTIN

Motion for a resolution
Paragraph 31 a (new)

31 a. Calls on the ECB to take duly into account privacy concerns around the digital euro and stresses that its development should be in line with EU privacy standards;

Amendment 332 #

Caroline NAGTEGAAL, Nicola BEER, Engin EROGLU, Olivier CHASTEL, Georgios KYRTSOS

Motion for a resolution
Paragraph 31 a (new)

31 a. Expresses concern about the steadily increasing divergence of TARGET2 balances within the ESCB; notes that the interpretation of these divergences is contested;

Amendment 333 #

Margarida MARQUES, Alfred SANT, Evelyn REGNER, Aurore LALUCQ, Marek BELKA, Marc ANGEL, René REPASI, Jonás FERNÁNDEZ, Csaba MOLNÁR, Pedro SILVA PEREIRA, Costas MAVRIDES, Joachim SCHUSTER

Motion for a resolution
Paragraph 31 a (new)

31 a. Calls for Enhancement of the ECB’s internal whistleblowing framework;

Amendment 334 #

Motion for a resolution
Paragraph 31 b (new)

31 b. Warns against the increased ability for the ECB to impose negative interest rates on digital euro accounts held at the central bank; insists that the digital euro will serve as complementary to physical cash and that it should not replace cash entirely;

Amendment 335 #

Motion for a resolution
Paragraph 31 b (new)

31 b. Reminds the ECB that Cash Payments are still a very important form of payments, and that it should not further reduce the amount of denominations in circulation;

Amendment 336 #

31 b. Calls on the ECB to duly consider the risks for the banking sector and overall lending to the real economy when designing the digital euro;

Amendment 337 #

Margarida MARQUES, Aurore LALUCQ, Marek BELKA, Marc ANGEL, René REPASI, Jonás FERNÁNDEZ, Csaba MOLNÁR, Pedro SILVA PEREIRA, Costas MAVRIDES

Motion for a resolution
Paragraph 31 b (new)

31 b. Calls for ECB to create an internal evaluation office for ex post assessment of its policy decisions;

Amendment 338 #

Caroline NAGTEGAAL, Nicola BEER, Engin EROGLU, Eva Maria POPTCHEVA, Olivier CHASTEL, Georgios KYRTSOS

Motion for a resolution
Paragraph 31 c (new)

31 c. Points out that the rotation principle as applied on the ECB's Governing Council allocates only four votes to the five largest euro area countries, which account for more than 80 % of euro area GDP, but 11 to the 14 remaining countries, although they generate less than 20 % of euro area GDP; asks the ECB to draw up a proposal to make the allocation of voting rights on the ECB Governing Council more democratic, and recommends that votes be weighted according to shares in the capital of the ECB;

Amendment 339 #

Margarida MARQUES, Alfred SANT, Paul TANG, Evelyn REGNER, Aurore LALUCQ, Marek BELKA, Marc ANGEL, René REPASI, Jonás FERNÁNDEZ, Csaba MOLNÁR, Pedro SILVA PEREIRA, Costas MAVRIDES

Motion for a resolution
Paragraph 31 c (new)

31 c. Welcomes the new communications policy, with more accessible ways to explains and presents ECB policy decision to general public and stakeholders. Given the current negative impact of tightening of the monetary policy on household budgets and companies investment plans, suggests reinforcement of ECB´s communication on financial advices on how families and business could better manage and prepare for an higher interest rates environment;

Amendment 34 #

Motion for a resolution
Recital C a (new)

C a. whereas the primary objective of the ECB is to maintain price stability, which it has defined as 2% inflation over the medium term;

Amendment 340 #

Caroline NAGTEGAAL, Nicola BEER, Engin EROGLU, Eva Maria POPTCHEVA, Georgios KYRTSOS, Gilles BOYER, Stéphanie YON-COURTIN

Motion for a resolution
Paragraph 31 c (new)

31 c. Strongly regrets the ECB’s decision to involve Amazon in testing prototype interfaces for a digital euro; stresses that Amazon is a potential competitor in this field and that it should therefore not be placed in such a position, especially since Amazon does not receive any monetary compensation for this assignment; stresses furthermore that outsourcing the digital euro infrastructure to a US tech company weakens the EU's strategic autonomy;

Amendment 341 #

Caroline NAGTEGAAL, Nicola BEER, Engin EROGLU, Eva Maria POPTCHEVA, Olivier CHASTEL, Georgios KYRTSOS, Gilles BOYER, Stéphanie YON-COURTIN

Motion for a resolution
Paragraph 31 d (new)

31 d. Welcomes the ECB’s achievement to lower its carbon emissions by 10.7% between 2020 and 2021; encourages the ECB to continue its steps to reduce its carbon emissions further by 46.2% (relative to 2019 levels) by 2030;

Amendment 342 #

Caroline NAGTEGAAL, Nicola BEER, Engin EROGLU, Eva Maria POPTCHEVA, Olivier CHASTEL, Georgios KYRTSOS, Gilles BOYER, Stéphanie YON-COURTIN

Motion for a resolution
Paragraph 31 e (new)

31 e. Supports the aim of the ECB to increase female representation by encouraging women to advance in this field; therefore welcomes initiatives such as the ECB Women in Economics Scholarship;

Amendment 35 #

Motion for a resolution
Recital C b (new)

C b. whereas inflation is expected to remain above the ECB’s 2% target in2024 due do the lagged effects of high energy prices on the non-energy components of inflation, the depreciation of the euro against the US Dollar, a strong labour market and some inflation compensation effects on wages;

Amendment 36 #

Caroline NAGTEGAAL, Nicola BEER, Engin EROGLU, Eva Maria POPTCHEVA, Olivier CHASTEL, Georgios KYRTSOS

Motion for a resolution
Recital C b (new)

C b. whereas the analysis by the ECB has shown that the rise in profits, not wages, has been one of the key factors in explaining the current inflation2a; _________________ 2a Isabel Schnabel, “The Globalisation of Inflation”. https://www.ecb.europa.eu/press/key/date/ 2022/html/ecb.sp220511_1~e9ba02e127.e n.html

Amendment 37 #

Motion for a resolution
Recital C b (new)

C b. whereas the ECB is politically independent, so that neither EU institutions and agencies, nor governments of the Members States, shall seek to influence the ECB;

Amendment 38 #

Motion for a resolution
Recital D

~~D. whereas acting within its mandate, the ECB has committed to contributing to the objectives of the Paris Agreement;~~deleted

Amendment 39 #

Motion for a resolution
Recital D

~~D. whereas acting within its mandate, the ECB has committed to contributing to the objectives of the Paris Agreement;~~deleted

Amendment 4 #

Motion for a resolution
Citation 5

— having regard to Eurostat’s flash estimate f~~or August~~rom 30 September 2022,

Amendment 40 #

Motion for a resolution
Recital D

D. whereas ~~acting within its mandate, the ECB has committed to contributing to the objectives of the Paris Agreement~~, without any prejudice to the primary objective of price stability, the ECB should also support the general economic policies in the Union with a view to contributing to the achievement of the objectives of the Union as laid down in Article 3 TEU;

Amendment 41 #

Motion for a resolution
Recital D

D. whereas acting within its mandate, the ECB has committed to contributing to the objectives of the Paris Agreement; whereas climate change can hamper the effectiveness of monetary policy, affect growth, and increase price and macroeconomic instability; whereas, without strong measures, the negative impact on the EU GDP could be severe;

Amendment 42 #

Motion for a resolution
Recital D

D. whereas ~~acting within its mandate, the ECB has committed to contributing to the objectives of the Paris Agreement;~~ President Lagarde has pledged to keep the European Parliament and the general public informed about ECB’s progress on ongoing work to incorporate climate change considerations into monetary policy operations;

Amendment 43 #

Motion for a resolution
Recital E a (new)

E a. whereas the Euro's external value in comparison to the Dollar has materially deteriorated over the past couple of months; whereas energy and energy derivatives are traded in Dollar and a slide of the Euro's exchange rate against the Dollar further contributes to inflation;

Amendment 44 #

Motion for a resolution
Recital E a (new)

E a. whereas small and medium-sized enterprises (SMEs) constitute the backbone of the EU economy and enhance economic and social cohesion; whereas SMEs have been severely hit by the economic crisis caused by the COVID- 19 pandemic; whereas SMEs therefore need further support;

Amendment 45 #

Motion for a resolution
Recital E a (new)

E a. whereas according to the June- July 2022 Eurobarometer survey, the public support for the European economic and monetary union with one single currency, the euro, is at its highest level ever: 80% in the euro area and 72% in the EU as a whole.

Amendment 46 #

Paul TANG, Aurore LALUCQ, Csaba MOLNÁR, Pedro SILVA PEREIRA

Motion for a resolution
Recital E a (new)

Ea. whereas the Banking Union, in which the European Central Bank has an integral and leading role, will not be complete until the establishment of a European Deposit Insurance Scheme;

Amendment 47 #

Motion for a resolution
Recital E a (new)

E a. Whereas studies show that by greening their bond portfolio central banks can have a significant impact in the fight against climate change;1a _________________ 1a https://cepr.org/voxeu/columns/tilting- balance-green-quantitative-easing-and- carbon-pricing

Amendment 48 #

Motion for a resolution
Recital E a (new)

E a. whereas a monetary union can only exist with fiscal responsibility and efficient markets within the Member States;

Amendment 49 #

Motion for a resolution
Recital E b (new)

E b. whereas the European Central Bank is accountable to the European Parliament as the representation of EU citizens;

Amendment 5 #

Motion for a resolution
Citation 5

— having regard to Eurostat’s flash estimate for ~~August~~ September2022,

Amendment 50 #

Motion for a resolution
Recital E b (new)

E b. whereas the ECB's legitimacy is closely linked to its mandate of maintaining price stability;

Amendment 51 #

Motion for a resolution
Recital E c (new)

E c. whereas Article 123 TFEU and Article 21 of the Statute of the European System of Central Banks and of the European Central Bank prohibit the monetary financing of governments;

Amendment 52 #

Motion for a resolution
Recital E c (new)

E c. whereas Article 123 of the Treaty on the Functioning of the European Union prohibits monetary state financing;

Amendment 53 #

Motion for a resolution
Recital E d (new)

E d. whereas the euro system has been built on the principle of monetary dominance;

Amendment 54 #

Motion for a resolution
Paragraph 1

1. Is deeply concerned by the record high levels of inflation, the flawed interpretation by the ECB of the evolution of the inflation and the pace at which the ECB takes action against it, as well as by the unprovoked Russian invasion of Ukraine and by its repercussions for the European economy;

Amendment 55 #

Motion for a resolution
Paragraph 1

1. Is deeply concerned by the unprovoked, immoral and unjustified Russian invasion of Ukraine ~~and by its repercussions for the European economy~~, which is illegal from the point of view of international law, and by its repercussions for the European economy, for instance disruption to supply chains and the inflationary spiral;

Amendment 56 #

Margarida MARQUES, Alfred SANT, Aurore LALUCQ, Marek BELKA, Marc ANGEL, René REPASI, Jonás FERNÁNDEZ, Csaba MOLNÁR, Pedro SILVA PEREIRA, Costas MAVRIDES, Joachim SCHUSTER

Motion for a resolution
Paragraph 1

1. Is deeply concerned by the unprovoked Russian invasion of Ukraine and by its ~~repercussions for the European economy~~serious, long-lasting and unpredictable repercussions for the European economy and society, especially for the most exposed and vulnerable groups, such as lower-income households and SMEs;

Amendment 57 #

Motion for a resolution
Paragraph 1

1. Is deeply concerned by the unprovoked Russian ~~invasion of~~war of aggression against Ukraine and by its repercussions for the European economy and constitutes a direct attack on European values;

Amendment 58 #

Motion for a resolution
Paragraph 1

1. Is deeply concerned by ~~the~~ Russia's unprovoked ~~Russian invasion of~~war of aggression towards Ukraine and by its repercussions for the European economy;

Amendment 59 #

Margarida MARQUES, Alfred SANT, Evelyn REGNER, Aurore LALUCQ, Marc ANGEL, René REPASI, Jonás FERNÁNDEZ, Csaba MOLNÁR, Pedro SILVA PEREIRA, Costas MAVRIDES, Joachim SCHUSTER

Motion for a resolution
Paragraph 1 a (new)

1 a. Understands the current challenges, uncertainty and complex environment to drive the monetary policy. Notes that ECB has limited tools or influence to address an high inflation trend that is mainly supply driven. Welcomes the assurance by the ECB and its members to be ready to take the actions needed to safeguard financial stability;

Amendment 6 #

Motion for a resolution
Citation 6

~~— having regard to the results of the ECB climate risk stress test of 8 July 2022,~~deleted

Amendment 60 #

Caroline NAGTEGAAL, Nicola BEER, Engin EROGLU, Eva Maria POPTCHEVA, Olivier CHASTEL, Georgios KYRTSOS, Gilles BOYER, Stéphanie YON-COURTIN

Motion for a resolution
Paragraph 1 a (new)

1 a. Expresses its deep concern about the historically high and increasing levels of inflation throughout the eurozone; recalls that the ECB is the institution responsible for maintaining price stability;

Amendment 61 #

Margarida MARQUES, Alfred SANT, Marek BELKA, Marc ANGEL, René REPASI, Jonás FERNÁNDEZ, Csaba MOLNÁR, Pedro SILVA PEREIRA, Costas MAVRIDES, Joachim SCHUSTER

Motion for a resolution
Paragraph 1 b (new)

1 b. Calls for ECB to make full use of the current policy tools at its disposal and consider all unconventional monetary policy instruments and flexibility within its mandate to ensure financial and macroeconomic stability and provide enough liquidity to serve the real economy and financial system;

Amendment 62 #

Motion for a resolution
Paragraph 2

2. Highlights that the statutory independence of the ECB, as laid down in the Treaties, is a ~~prerequisite for it to fulfil its mandate~~n obstacle to a democratic monetary policy; notes that such independence renders the ECB immune to democratic scrutiny, while its single mandate to maintain price stability leads to a recurrent bias towards the interests of financial sector agents;

Amendment 63 #

Caroline NAGTEGAAL, Nicola BEER, Engin EROGLU, Eva Maria POPTCHEVA, Olivier CHASTEL, Georgios KYRTSOS

2. Highlights ~~that the~~, while respecting the ECB's statutory independence ~~of the ECB~~, as laid down in the Treaties, ~~is a prerequisite for it to fulfil its mandate~~that the primary objective of monetary policy and of the ECB's mandate is to maintain price stability; considers this as an absolute prerequisite for it to fulfil its mandate and its most powerful tool to fight inflation;

Amendment 64 #

Motion for a resolution
Paragraph 2

2. Highlights that the statutory independence of the ECB, as laid down in the Treaties, is a prerequisite for it to fulfil its mandate; stresses that this independence must remain untouched at all times; emphasises that this independence requires the ECB to refrain from taking political decisions;

Amendment 65 #

Margarida MARQUES, Evelyn REGNER, Marek BELKA, Marc ANGEL, René REPASI, Jonás FERNÁNDEZ, Csaba MOLNÁR, Pedro SILVA PEREIRA, Costas MAVRIDES

Motion for a resolution
Paragraph 2

2. Highlights that the statutory independence of the ECB, as laid down in the Treaties, is a prerequisite for it to fulfil its mandate; Highlights that central bank independence should be accompanied by a corresponding level of accountability;

Amendment 66 #

Motion for a resolution
Paragraph 2

2. Highlights that the statutory independence of the ECB, as laid down in the Treaties, is a prerequisite for it to fulfil its mandate of maintaining price stability;

Amendment 67 #

Motion for a resolution
Paragraph 2 a (new)

2 a. Deplores the decision of the ECB to raise interest rates in its last two meetings, by 50 and 75 basis points respectively, despite the fact that President Lagarde recognized that raising interest rates will not lower energy prices3a; calls on the ECB to revert the rise in interest rates and to take the necessary actions to ensure low interest rates in the Euro Area; _________________ 3a Press Conference of Christine Lagarde (President of the ECB) and Luis de Guindos (Vice-President of the ECB), 8 September 2022: https://www.ecb.europa.eu/press/presscon f/2022/html/ecb.is220908~cd8363c58e.en. html

Amendment 68 #

Caroline NAGTEGAAL, Nicola BEER, Engin EROGLU, Eva Maria POPTCHEVA, Olivier CHASTEL, Georgios KYRTSOS

Motion for a resolution
Paragraph 3

3. ~~Welcom~~Deplores the fact that the Republic of Croatia ais the 20th member country of the euro area; recalls that the euro area is already experiencing difficulties due to the macroeconomic divergences within it;

Amendment 69 #

Margarida MARQUES, Marek BELKA, Marc ANGEL, René REPASI, Jonás FERNÁNDEZ, Csaba MOLNÁR, Pedro SILVA PEREIRA, Costas MAVRIDES

Motion for a resolution
Paragraph 3

3. Welcomes the Republic of Croatia as the 20th member country of the euro area; Calls on ECB for an adequate reflection on how to apply the current euro accession criteria during extraordinary, disruptive and uncertain events, such as Ukraine conflict, in order to proceed with Economic and Monetary Union integration. Calls on the ECB to promote the benefits of adopting the euro as an incentive for other non-euro members to join or speed up their efforts for future accession;

Amendment 7 #

Margarida MARQUES, Marek BELKA, Marc ANGEL, René REPASI, Jonás FERNÁNDEZ, Csaba MOLNÁR, Pedro SILVA PEREIRA, Costas MAVRIDES, Joachim SCHUSTER

Motion for a resolution
Citation 7 a (new)

— having regard to the IMF´s 2022 World Economic Outlook,

Amendment 70 #

Motion for a resolution
Paragraph 3

3. Welcomes the Republic of Croatia as the 20th member country of the euro area; stresses that participation in the monetary union comes with the responsibilities enshrined in the Stability and Growth Pact;

Amendment 71 #

Motion for a resolution
Paragraph 3

3. Welcomes the Republic of Croatia ~~as the 20th member country of the euro area~~'s accession to the euro area as its 20th member country as of 1 January 2023;

Amendment 72 #

Motion for a resolution
Paragraph 3

3. Welcomes the Republic of Croatia as the 20th member country of the euro area as of 1 January 2023;

Amendment 73 #

Motion for a resolution
Paragraph 3

3. ~~Welcomes~~Notes that the Republic of Croatia asis now the 20th member country of the euro area;

Amendment 74 #

Motion for a resolution
Paragraph 3 a (new)

3 a. calls on the ECB to step up the speed and determination to raise interest rates as long as the ECB's forecasts remain unchanged;

Amendment 75 #

Motion for a resolution
Paragraph 3 b (new)

3 b. calls on the ECB to develop a credible communication strategy backed up by swift and tangible action to convince European citizens that the ECB means business fighting inflation;

Amendment 76 #

Motion for a resolution
Paragraph 3 c (new)

3 c. Calls on the ECB to monitor the single currency's external value and its interaction with other developed economies, while focusing on price stability, to avoid 'imported inflation'; notes that the Euro's slide against the Dollar gives particular rise to concern, given that energy derivatives are traded in Dollar; observes that the recent in decline in the Euro/Dollar exchange rate is therefore a contributor to energy price inflation; is convinced that more diversification in energy sources and a stronger European economy can reduce this risk in the future;

Amendment 77 #

Motion for a resolution
Paragraph 4

4. ~~Not~~Welcomes that fiscal and monetary policies have reinforced each other during the pandemic, preventing a repetition of the experience of the global financial crisis, when inadequate support for demand resulted in low growth, high unemployment, and financial instability; agrees with Vice President De Guindos’ statements on 4 July 2022 that fiscal policy should do its part by delivering targeted support to vulnerable groups in the current context; notes that higher taxes on higher earners or on industries and firms that are highly profitable in spite of the energy shock constitute less inflationary pressure compared to higher deficits; stresses that maintaining price stability today requires even closer coordination between fiscal, monetary and structural policies, as addressing supply- side shocks requires greater supply-chain resilience and a shift away from fossil fuels; recognises the limit of what inflation targeting regimes can achieve at the current juncture;

Amendment 78 #

Motion for a resolution
Paragraph 4

4. Notes that the fiscal and monetary policies ~~have reinforced each other dur~~conducted ing the pandemic; stresses that maintaining price stability today requires even closer coordination between fiscal, monetary and structural policies, as addressing supply-side shocks requires greater supply-chain resilience and a shift away from fossil fuelseuro area over the last decade have paved the way for inflation;

Amendment 79 #

Motion for a resolution
Paragraph 4

4. ~~Notes that fiscal and monetary policies have reinforced each other during the pandemic; s~~Stresses that maintaining price stability today requires evenr closer coordination between ~~fiscal, monetary and structural policies, as~~monetary, fiscal policies and structural reforms, as maintaining price stability and addressing supply- side shocks requires greater supply- chain resilience ~~and a shift away from fossil fuel~~, diversification and a shift towards renewables;

Amendment 8 #

Motion for a resolution
Citation 7 a (new)

— having regard to the June-July 2022 Eurobarometer survey,

Amendment 80 #

Margarida MARQUES, Paul TANG, Evelyn REGNER, Aurore LALUCQ, Marek BELKA, Marc ANGEL, René REPASI, Jonás FERNÁNDEZ, Csaba MOLNÁR, Pedro SILVA PEREIRA, Joachim SCHUSTER

Motion for a resolution
Paragraph 4

4. Notes that fiscal, budgetary and monetary policies have reinforced each other during the pandemic; stresses that maintaining price stability today requires even closer coordination between fiscal, budgetary, monetary and structural policies, as addressing supply- side shocks requires greater supply-chain resilience ~~and a shift away from fossil fuels;~~with the appropriate level of investment, and a shift away from fossil fuels; Notes that during COVID, all EU institutions and Member States worked together, swiftly, in a coordinated manner and within their mandates to tackle the social, economic and financial impacts of the crisis

Amendment 81 #

Motion for a resolution
Paragraph 4

4. Notes that fiscal and monetary policies have reinforced each other during the pandemic; stresses that maintaining price stability and promoting full employment today requires even closer coordination between fiscal, monetary and structural policies, as addressing supply- side shocks requires significant public and private investments to address supply bottlenecks, promote greater supply-chain resilience and a shift away from fossil fuels;

Amendment 82 #

Motion for a resolution
Paragraph 4

4. Notes that fiscal and monetary policies have reinforced each other during the pandemic; stresses that maintaining price stability today requires even closer coordination between fiscal, monetary and structural policies~~, as addressing supply- side shocks requires greater supply-chai~~; notes, however, that the Eurozone's architecture has been rdesi~~lience and a shift away from fossil fuels~~gned on the premise of monetary dominance;

Amendment 83 #

Motion for a resolution
Paragraph 4

4. Notes that fiscal and monetary policies have reinforced each other during the pandemic; stresses that maintaining price stability today requires even closer coordination between fiscal, monetary and structural policies, as addressing supply- side shocks requires greater supply-chain resilience and a ~~shift away from fossil fuels~~more predictable investment framework;

Amendment 84 #

Motion for a resolution
Paragraph 4 a (new)

4 a. highlights President Lagarde's warning that "it is essential that fiscal support used to shield (…) households from the impact of higher prices is temporary and targeted. This limits the risk of fuelling inflationary pressures, thereby also facilitating the task of monetary policy to ensure price stability, and contributing to preserving debt sustainability."1a _________________ 1a Introductory Remarks to the Monetary Dialogue of 26 September 2022. https://www.ecb.europa.eu/press/key/date/ 2022/html/ecb.sp220926_1~0bd6fcc86c.en .html

Amendment 85 #

Margarida MARQUES, Evelyn REGNER, Marek BELKA, Marc ANGEL, René REPASI, Jonás FERNÁNDEZ, Pedro SILVA PEREIRA, Joachim SCHUSTER

Motion for a resolution
Paragraph 4 a (new)

4 a. Highlights that unprecedented crises demand unprecedented, innovative and bold decisions on monetary policy coupled with swift and broader coordination with the fiscal policy at EU and national level;

Amendment 86 #

Margarida MARQUES, Alfred SANT, Evelyn REGNER, Marek BELKA, Marc ANGEL, René REPASI, Jonás FERNÁNDEZ, Csaba MOLNÁR, Pedro SILVA PEREIRA, Costas MAVRIDES, Joachim SCHUSTER

Motion for a resolution
Paragraph 4 b (new)

4 b. Stresses that sustainable growth, resilience and price stability cannot be achieved by monetary policy alone and that supportive and discretionary fiscal policy and socially balanced and productivity-enhancing reforms and investments are also necessary;

Amendment 87 #

Motion for a resolution
Paragraph 5

Amendment 88 #

Motion for a resolution
Paragraph 5

Amendment 89 #

Motion for a resolution
Paragraph 5

Amendment 9 #

Motion for a resolution
Citation 9

~~— having regard to the Paris Agreement adopted under the UN Framework Convention on Climate Change,~~deleted

Amendment 90 #

Motion for a resolution
Paragraph 5

5. ~~Welcomes~~Disagrees with President Lagarde’s statement that the current geopolitical crisis requires us to progress on EU fiscal integration; recalls that the Economic and Monetary Union cannot function smoothly without ~~a fiscal capacity at European level to respond to external shock~~sound budgets in the Member States, as laid down in the Treaties;

Amendment 91 #

Motion for a resolution
Paragraph 5

5. ~~Welcomes President Lagarde’s statement that the current geopolitical crisis requires us to progress on EU fiscal integration; r~~Recalls that the Economic and Monetary Union cannot function smoothly without ~~a fiscal capacity at European level to respond to external shock~~the coordination of national economic and fiscal policies;

Amendment 92 #

Caroline NAGTEGAAL, Nicola BEER, Engin EROGLU, Georgios KYRTSOS

Motion for a resolution
Paragraph 5

5. ~~Welcomes President Lagarde’s statement that the current geopolitical crisis requires us to progress on EU fiscal integration; r~~Recalls that the Economic and Monetary Union cannot function smoothly without ~~a fiscal capacity at European level~~sustainable sovereign debt trajectories, creating fiscal buffers to respond to external shocks;

Amendment 93 #

Motion for a resolution
Paragraph 5

5. ~~Welcom~~Notes President Lagarde’s statement that the current geopolitical crisis requires us to progress on EU fiscal integration; recalls that the Economic and Monetary Union ~~cannot function smoothly without a fiscal capacity at European level~~requires solid fiscal policies in Member States in order to be able to respond to external shocks;

Amendment 94 #

Motion for a resolution
Paragraph 5

5. Welcomes President Lagarde’s statement that the current geopolitical crisis requires us to progress on EU fiscal integration; recalls that the Economic and Monetary Union cannot function smoothly without a fiscal capacity at European level to respond to external shocks; stresses that completion of its institutional architecture is a prerequisite to strengthening the international role of the euro; recalls that a centralised fiscal capacity could help to address the imbalances in the current economic and monetary union, in which a single monetary policy coexists with a fiscal policy that is fragmented along national lines;

Amendment 95 #

Margarida MARQUES, Marek BELKA, Marc ANGEL, René REPASI, Jonás FERNÁNDEZ, Csaba MOLNÁR, Pedro SILVA PEREIRA, Costas MAVRIDES, Joachim SCHUSTER

Motion for a resolution
Paragraph 5

Amendment 96 #