ECB’s Nagel and Villeroy: Aligning Actions With Inflation Target Crucial

14 November 2023

By Isabel Teles – FRANKFURT (Econostream) – European Central Bank Governing Council members Joaquim Nagel and François Villeroy de Galhau on Tuesday said it was essential to align actions with the inflation target.

In a guest contribution published in German daily Frankfurter Allgemeine Zeitung and French daily Le Figaro, Nagel, who heads the German Bundesbank, and Villeroy, who heads the Banque de France, said that ‘[w]hat is crucial is that we also align our actions today with the inflation target of 2% - and that is what we are doing.’

‘Both of us did not always completely agree on all the steps that were taken, but together with our colleagues on the Governing Council of the ECB we were able to reach a decision. And inflation is coming down significantly’, they said.

The fact that the inflation target had not yet been reached imposed particular hardships on the ‘weakest members of society’ and made ‘long-term investments in the future sustainability of our economies more difficult’, they said.

In a context in which Europe was faced with challenges of climate change, ageing populations, digitalisation, and geopolitical tensions, the friendship between France and Germany was of the utmost importance, they said.

‘A stable Europe benefits strongly from close coordination between France and Germany beyond economic policy’, Nagel and Villeroy said.

Despite holding different opinions about foreign affairs, security and energy, both countries had an ‘enduring ability to find common ground’, they said.