Measures taken by the ECB in March were critical in removing the tail risk of the COVID-19 pandemic and will continue to be crucial in supporting the return of inflation towards the 2% target, President Christine Lagarde said before the Committee on Economic and Monetary Affairs of the European Parliament on Monday. Lagarde reinforced the ECB is determined and ready to adjust all of its instruments, as appropriate, to support the economy but warned that it is important to adopt quickly the European Commission’s proposal for a revised EU long-term budget to give more certainty and confidence to citizens, businesses and financial markets and that any delay risks generating negative spillovers and driving up the costs, and hence the financing needs, of this crisis.
