Vice‑President Luis de Guindos delivered the European Central Bank’s Annual Report 2025 to the European Parliament’s Economic and Monetary Affairs Committee on 4 May 2026, outlining the euro area’s modest recovery, policy measures and institutional progress. Growth in 2025 was 1.4 %, helped by strong exports early in the year and sustained domestic demand. Inflation averaged 2.1 %, near the 2 % target, which allowed the Governing Council to cut the deposit facility rate to 2 % and continue normalising the balance sheet. The ECB also advanced the digital euro to a second phase, focused on technical readiness, market engagement and legislation, with a pilot expected in 2027 and possible first issuance in 2029. Other initiatives included a modern cash framework, tokenised financial ecosystem projects Appia and Pontes, and work on the savings and investments union and regulatory simplification. The ECB reaffirmed its commitment to price stability and financial resilience.
© European Central Bank, 2025.
Summary derived from the ECB website (https://www.ecb.europa.eu ).
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