ECB executive board member discusses strengthening European firms and digital euro

In an interview conducted on August 10, 2026, Piero Cipollone, Member of the Executive Board of the European Central Bank (ECB), discussed strategies to strengthen European firms and the role of the ECB in macroeconomic stability.

He emphasized the importance of removing internal restrictions within the European Single Market to enable cross-border expansion and improve competitiveness. Cipollone highlighted that domestic demand growth is vital and linked to easier market expansion and investment.

The ECB’s role in maintaining price stability was underlined as essential for macroeconomic stability, reducing uncertainty, and enabling firms to plan. Cipollone noted that in the event of supply shocks, monetary policy must be carefully calibrated to avoid dampening economic growth, and that expectations anchoring is crucial for medium-term inflation control.

He discussed fiscal policy measures as temporary tools to mitigate external shocks, stressing the importance of reducing dependence on fossil fuels by increasing renewable energy sources. This shift could lower energy costs for European firms and households and reduce resource transfers to oil-producing countries.

Regarding inflation and wages, Cipollone pointed out that productivity growth is key to protecting real wages without triggering wage-price spirals. He also emphasized the importance of education and training systems in enhancing productivity, especially with technological advancements and artificial intelligence.

On economic outlook, Cipollone indicated that the risk of stagflation appears remote, citing signs of resilience in the European economy and stable inflation projections. He also addressed the digital euro, clarifying that it will complement cash, function offline, and ensure user privacy, with transaction details only accessible to involved banks, not the Eurosystem or third parties.

He concluded that the digital euro aims to enhance payment privacy and security without replacing cash or compromising user anonymity, aligning with the ECB’s broader monetary and financial stability objectives.