ECB’s de Guindos: Price Stability Not Enough to Achieve Growth, ECB ‘Not Almighty’

19 June 2025

ECB’s de Guindos: Price Stability Not Enough to Achieve Growth, ECB ‘Not Almighty’
Luis De Guindos, vice president of the European Central Bank, at the ECB main building in Frankfurt am Main on May 15, 2024. Photo by © Maria Rita Quitadamo/ECB under CC BY-NC-ND 2.0.

By Marta Vilar – MILAN (Econostream) – European Central Bank Vice President Luis de Guindos said on Thursday that price stability would not per se lead to economic growth and that the ECB was not all-powerful.

In a panel discussion at the Young Factor International Conference in Milan, de Guindos said that price stability was a ‘precondition for having a healthy economy’ but not sufficient to achieve growth.

Improving productivity and competitiveness as well as having properly functioning labour and capital markets were also necessary, he said.

‘The ECB… we are not almighty. We can do what we can do, we can bring inflation down and now we think that we have achieved our target’, he said. ‘Now inflation is 1.9% and we are confident that it will be stable around these levels.’

 

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