On the occasion of the ECB's recent interest rate hike Henrike Hahn, MEP (The Greens/EFA), Deputy Speaker of the German Delegation of the Greens/EFA, Substitute Member of the Economic and Monetary Affairs Committee and Shadow Rapporteur on the ECB Annual Report 2021, comments:

“The renewed increase in key interest rates and the announced quantitative tightening sends a problematic signal for the green transformation of the economy and risks exacerbating the upcoming recession. 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.

Investments in renewable energies and energy efficiency can also make an important contribution to fighting inflation by bringing down energy prices. Therefore, the ECB must now urgently examine the extent to which differentiated interest rates can be introduced for green investments.”