Europe needs a comprehensive plan to fight record high inflation*, urged S&Ds after today’s decision from the European Central Bank (ECB) to further increase the key interest rates in a race to tame skyrocketing living costs. This plan should include social, fiscal, economic, employment and investment measures.

Biljana Borzan MEP, S&D vice-president for economic matters, said:

“As we have been repeating again and again in recent months, the record high inflation, driven by increasing energy prices and commodity shortages, requires determined and wide-ranging action. Many Europeans are dreading winter. We should help them to heat their homes and pay for their food.

Jonás Fernández MEP, S&D spokesperson on economic and monetary affairs, said: 

“The ECB should ensure a balance between price developments and growth in the euro area. But Europe needs to do much more. We need to put together a genuinely complete plan to fight inflation. Such a plan should include social, fiscal, economic, employment and investment action. As we warned already in July, we must avoid repeating the mistakes of the past!”

*Note to editors:

After the ECB’s Governing Council decided to increase the key interest rates by 50 basis points at its monetary policy meeting on 21 July, it took an even more decisive step today. It raised the key interest rates by 75 basis points, which is the largest rate increase in the ECB’s history.