MEPs Call for Urgent Review of ECB Policy as Inflation Concerns Persist

MEPs are urging a critical reassessment of the European Central Bank’s approach to inflation, stressing the need for a faster return to price stability and a deeper understanding of the underlying drivers of persistent price increases. Parliamentarians emphasise that lessons must be drawn to better prepare for future economic crises and to protect households from sustained cost pressures.

Lawmakers also highlighted the impact of rising prices on ordinary households, particularly those with lower incomes, as a key reason for urgent policy attention.

The findings come against the backdrop of inflation remaining above the euro area average in Malta. In December 2025, the annual inflation rate as measured by the Harmonised Index of Consumer Prices (HICP) stood at 2.4 per cent, marginally down from 2.5 per cent in November.

On Tuesday, the European Parliament adopted its annual review of the ECB’s policies and recommendations for 2026, following a debate with ECB President Christine Lagarde on Monday. The text stresses that the ECB’s independence is essential for maintaining price stability, while also highlighting the importance of accountability. Parliament underscored that central banks should not operate in isolation and welcomed the solidarity expressed by the ECB and other central banks worldwide with the US Federal Reserve.

MEPs insisted that, while inflation has eased slightly in some areas, any future monetary policy adjustments must remain cautious, data-driven, and firmly focused on protecting households and maintaining long-term economic resilience across the EU.