ECB's Schnabel
ECB's Schanbel is speaking. Some highlights from her speech:
- Monetary policy cannot solve structural problems
- Return to 2% target in a timely manner is becoming more and more likely despite elevated services inflation and strong wage growth
- Growth in the euro area has become increasingly uneven in recent years.
- Monetary policy may contribute to rising heterogeneity, but it is not the main driver.
- Structural headwinds are holding back growth in some countries more than others.
- Signs of softening labor demand and progress in disinflation suggest inflation could sustainably fall back to the 2% target.
- Elevated services inflation and strong wage growth persist.
- Monetary policy alone cannot resolve structural issues.
- European governments must turn current challenges into opportunities.
- Europe has previously demonstrated its ability to adjust and rebound from adversity.
- Escaping stagnation requires action at both national and European levels.
- Focus on innovation, entrepreneurship, competition, and business dynamism is needed.
- Strengthening the Single Market, improving access to private equity, and reducing bureaucracy are critical.
- The green transition should be leveraged to advance innovation and regain price competitiveness.
- Policies must incentivize labor participation and preserve a skilled workforce through immigration and education.
- These efforts will strengthen the euro area.