Today, for the second time in a row, the ECB raised interest rates by 75 basis points to their highest level since January 2009.
Henrike Hahn, Bavarian member of the European Parliament (The Greens/EFA), substitute member of the Economic and Monetary Affairs Committee and shadow rapporteur on the ECB Annual Report 2021, comments:
“The increase in interest rates by the ECB can has the potential to slow down dynamic economic development and deepen the recession in the euro zone.
Higher interest rates slow down green investments - because they reduce incentives for new, green investments, which face significantly higher financing costs than investments in fossil fuels.
The ECB must therefore now examine the extent to which differentiated interest rates can be implemented for green investments, which we now urgently need in Europe."
I would be happy to answer any further questions.