ecb and the eurosystem concluded their first strategy review in almost two decades. i would like to reiterate my gratitude to the econ committee for its valuable input, and i am very pleased to read in your report that you welcome the outcome. our new strategy will ensure we have a strong foundation to guide us in the conduct of monetary policy in the years to come. we are now working hard to put it into practice. i will briefly discuss three areas highlighted in your report in which the review is having an impact on our daily work. the first area is how we take our monetary policy decisions. in your report, you highlight the importance of ensuring the necessity, suitability and proportionality of all our monetary policy measures. indeed, before taking any decision the governing council conducts a careful evaluation of the effectiveness, efficiency and proportionality of its actions, including their potential side effects, based on an integrated assessment of all relevant factors. this assessment builds on a revised analytical framework which brings together the economic analysis and the monetary and financial analysis. our new strategy also recognises financial stability as a precondition for price stability and vice versa. in line with this, we undertook our first in - depth assessment of the interrelation between monetary policy and financial stability at our december meeting and we will continue to do so twice a year going forward. the second area is how we account for the impact of climate change. i am pleased that your report welcomes our action plan on how to incorporate climate change considerations in our monetary policy framework. and i am equally pleased to tell you that the implementation of the climate change action plan is on track. the milestones for 2022 include a detailed plan for disclosure requirements in the collateral framework and asset purchases, a pilot stress test on the eurosystem balance sheet, and proposals to adapt the framework of our corporate bond purchase programmes. we are also working together with other central banks across the euro area on new exploratory climate - related statistical indicators and we are adapting our macroeconomic models. integrating climate - related indicators and risks is essential to better understand how climate change is affecting the economy, the inflation outlook, monetary policy transmission and financial stability. the third area is how we communicate and engage with the people we serve, and whom you represent. good communication is crucial for our policy, for our credibility and for the trust people have in us. but communicating well to different audiences is challenging, in particular in the euro area. i welcome that the

christine lagarde : introductory statement - european parliament plenary debate on the ecb annual report introductory statement by ms christine lagarde, president of the european central bank, at the plenary session of the european parliament, strasbourg, 14 february 2022. * * * today ’ s debate is an important pillar of the ecb ’ s accountability relationship with this parliament. it is crucial for the ecb to explain its actions to the public, and to you as their elected representatives. but, as i have said before, we need to be equally focused on listening. it is in this spirit that i have read your report and i look forward to hearing your views during today ’ s debate. i will first outline our view of the current economic situation in the euro area and explain our monetary policy stance. i had the opportunity to discuss these issues last week in the context of the regular dialogue with the committee on economic and monetary affairs ( econ ). i will then briefly discuss how the ecb ’ s new strategy addresses some of the key points described in your report, and ensures that our monetary policy strategy is fit for purpose, both today and in the future. the euro area economy and the ecb ’ s monetary policy recent data confirm that quarterly growth slowed to 0. 3 per cent in the final quarter of 2021, which still allowed gross domestic product ( gdp ) to recover to its pre - pandemic level. the moderation in growth momentum has resulted mainly from the rapid spread of the omicron variant. the associated containment measures have dampened activity, particularly in consumer services such as travel, tourism, hospitality and entertainment. the current pandemic wave and associated restrictions are likely to continue to have a negative impact on growth at the start of this year. two other factors, namely supply bottlenecks and high energy costs, are also expected to dampen economic activity in the near term. however, the economic impact of the current pandemic wave appears to be less damaging to activity than previous ones. moreover, the aforementioned bottlenecks will still persist for some time, but there are signs that they may be starting to ease. this will allow the economy to pick up strongly again later this year. inflation has risen sharply in recent months and it further surprised on the upside in january, with the rate increasing to 5. 1 per cent from 5. 0 per cent in december. inflation is likely to remain high in the near term. energy prices – as you also