Macron Calls for ECB Monetary Policy Approach Rethink

Core Viewpoint - French President Emmanuel Macron advocates for a shift in the European Central Bank's (ECB) monetary policy to enhance the single market and mitigate financial crisis risks [1][2]. Group 1: Monetary Policy Adjustments - Macron suggests that the ECB should adjust its monetary policy to prioritize growth and employment alongside inflation control, especially in light of the economic challenges posed by the US dollar and Chinese yuan [2]. - The ECB's current focus on inflation, with a target of around 2% over the medium term, contrasts with the dual mandate of the US Federal Reserve, which includes maximum employment [3]. Group 2: Financial Stability Concerns - Macron expresses concerns about the potential financial instability arising from increasing US deregulation in crypto assets and stablecoins, emphasizing the need for Europe to maintain its status as a zone of monetary stability and credible investment [5]. - He also highlights the importance of protecting the European monetary zone and its financial players from external risks [5]. Group 3: ECB's Role and Integration - Macron criticizes the ECB's ongoing sale of government bonds, arguing that it could lead to higher long-term interest rates, reduced economic activity, and a stronger euro [4]. - ECB President Christine Lagarde has previously called for more strategic steps towards fostering European integration, indicating that a truly single market would lessen dependence on external decisions [4].