ECB Vice-President presents 2025 annual report to European Parliament committee

Luis de Guindos, Vice-President of the European Central Bank (ECB), presented the ECB’s Annual Report for 2025 to the Committee on Economic and Monetary Affairs of the European Parliament. This was his final presentation in this role, as his eight-year mandate ends later this month.

The report and the ECB’s response to the European Parliament’s resolution on last year’s report are key elements of the ECB’s accountability and dialogue with the Parliament.

In 2025, the euro area experienced a moderate recovery with 1.4% growth, supported by exports, domestic demand, a strong labor market, and moderating inflation. Inflation averaged 2.1%, close to the ECB’s 2.0% target. The Governing Council reduced the deposit facility rate by 100 basis points to 2.0% in mid-2025 and maintained it there.

The ECB concluded its monetary policy strategy assessment, reaffirming the 2% inflation target and emphasizing the importance of a responsive approach to deviations. The current economic environment remains uncertain due to geopolitical tensions and volatile energy markets, leading the ECB to keep interest rates unchanged at its latest meeting.

In 2025, the ECB made progress in strengthening the Economic and Monetary Union, including advancing the digital euro project towards technical readiness and legislative processes, developing a modern cash framework, and exploring a tokenized financial ecosystem with initiatives like Appia and Pontes.

The ECB also contributed to establishing a robust regulatory framework, supporting financial stability, and advancing the savings and investments union. Efforts to simplify regulatory and reporting frameworks for banks were also undertaken, aiming to maintain resilience while improving efficiency.

De Guindos highlighted the resilience of the euro and the importance of the ECB’s relationship with the European Parliament, expressing confidence in the continued commitment to price and financial stability. He concluded by emphasizing the progress and challenges faced since 2018 and expressed optimism about the future.

The full report and remarks are available on the ECB website.