ETUC invites ECB to adopt a forward looking monetary policy
Today’s meeting of the governing council of the European Central Bank (ECB) takes place against the background of high headline inflation rates and stronger than expected first quarter growth (0.8%). The European Trade Union Confederation (ETUC) invites the ECB to look behind the headline statistics and at underlying trends instead.
High headline inflation is driven by factors external to the euro economy and is likely to be temporary. The strong growth performance of the euro area in the first quarter essentially comes from an exceptional surge in construction investment (mild winter) and from a surge in inventory building in Germany. With confidence falling in France and Italy, growth sharply decelerating in Spain and retail sales remaining subdued in Germany, the outlook for growth and jobs is not that good.
Says Reiner Hoffmann, Deputy General Secretary of the ETUC: “ It is getting quite urgent that the ECB starts looking at forward looking indicators. The message from these indicators is not quite comforting for the outlook for growth and jobs”.
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