Europe has no escape from stagnation
EconomistMAR 26
Eurozone Inflation Rises to ECB's 2% Target in June 2025
Above: ECB President Christine Lagarde at a press conference on June 30, 2025. Image copyright: Horacio Villalobos/Corbis/Getty Images
The Spin
Pro-establishment narrative
The ECB's monetary policy has proven remarkably successful, anchoring Europe's economy even through unprecedented shocks like the pandemic and energy crisis. The bank successfully brought inflation down from over 8% back to target through decisive action. This track record validates keeping 2% as the cornerstone, providing Europeans a price stability foundation they can count on.
Establishment-critical narrative
The ECB's cautious approach fails Europe's struggling economy. While celebrating 2% inflation, essential costs like food prices continue to cripple families. The Bank's timid rate cuts ignore economic stagnation, prioritizing abstract price targets over concrete human needs. Europe remains trapped in low-growth malaise while citizens suffer.