In a vote on 9 February, Members of the European Parliament (MEPs) told the European Central Bank (ECB) to incorporate climate-related risks in its policies. The Parliament also formally agreed to start negotiations with the ECB to formalise its accountability framework.
To ensure monetary policy does not conflict with the EU’s carbon neutrality targets, the European Central Bank must replace its current ‘market neutrality’ approach and rely instead on the EU taxonomy, a new briefing by Positive Money Europe argues.
The ECB launched a massive 750 billion euro plan to cope with the Coronavirus crisis. But these measures will only work if national governments spend as much as is necessary and outline an ambitious plan to tackle the recession.
By refusing to affirm the ECB’s willingness to “close spreads” on the Italian bonds market, Christine Lagarde’s mistakenly caused major indignation among citizens, politicians, and financial markets. But while Lagarde’s ambiguous comments were devastating, they mostly reveal the Eurozone’s flawed architecture.
In a report adopted this week, the European Parliament confirmed that the ECB has to directly address climate change in its policies.