Lagarde, ‘the ECB is independent’. Clash with Tajani

Christine Lagarde, the President of the European Central Bank (ECB), firmly asserted the institution's independence in response to political pressures from Italy regarding interest rate cuts. This statement came just before the Eurogroup meeting, where Italian Foreign Minister Antonio Tajani expressed his views on the ECB's role. Tajani emphasized that while he does not wish to influence the ECB's decisions, he believes it should support the real economy and job creation, rather than solely focusing on inflation control. Tajani's comments were echoed by Adolfo Urso, the Minister of Enterprises and Made in Italy, who criticized the ECB for not meeting expectations. In contrast, Lagarde reiterated that the ECB operates independently and is not swayed by political opinions, whether positive or negative. She highlighted that the ECB's primary mandate is to maintain price stability, which is guided by data and inflation forecasts. Lagarde pointed out the significant reduction in inflation rates, noting a drop from a peak of 10.6% in October to 2.2% recently. She acknowledged the varying inflation rates across different countries, indicating that Italy's situation is somewhat better. This progress reflects the ECB's commitment to achieving its goals in a timely manner. The exchange between Lagarde and Tajani underscores the ongoing tension between political expectations and the ECB's mandate. As the central bank navigates these pressures, it remains focused on its core objectives, emphasizing the importance of data-driven decision-making in its monetary policy.