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Lagarde - Towards an orderly energy transition

Opening remarks by Christine Lagarde, President of the ECB, at the joint IEA-ECB-EIB High-Level International Conference on “Ensuring an orderly energy transition: Europe’s competitiveness and financial stability in a period of global energy transformation”

In her speech, Christine Lagarde addresses the challenges of the green energy transition and its implications for monetary policy. She highlights the significance of volatile energy prices and shifts in energy markets for inflation dynamics. Lagarde emphasizes the scientific consensus on climate change and the high social costs if the green transition is mishandled. She argues against procrastination, stating that delaying climate targets will not reduce the costs of the transition and may increase the risk of volatility and backlash. Lagarde discusses the challenges faced by firms in financing green investments and emphasizes the need for a market for green finance in Europe. She also emphasizes the importance of price stability in driving green investments and outlines measures taken by the ECB to address climate risk. Lagarde stresses the importance of sharing the burden of the transition fairly and highlights the effectiveness of fiscal measures in reducing inequality during the energy crisis. She concludes by emphasizing the need to follow through with the transition and ensure that the costs are shared fairly.


Positivity score: 80
Uncertainty score: 40

Switzerland KOF 95.87 (consensus 90.5) in Sep-23

- Switzerland's KOF index increased to 95.87 in September 2023, surpassing expectations, but remains at its lowest level since June 2023.
- The KOF index is currently 1.55 points below the one-year average and 3.94 points below the long-run average, indicating below-average economic performance.

France HICP inflation 5.65% y-o-y in Sep-23

- France's HICP inflation in September 2023 stood at 5.65% year-on-year, showing a slight decrease from the previous reading of 5.72%. This represents the lowest growth rate since July 2023.
- The current HICP inflation is 0.73 percentage points below the one-year average, signaling a deviation from the recent trend of higher inflation. However, it still remains 3.79 percentage points above the long-run average, indicating elevated inflationary pressures.

Netherlands HICP inflation -0.29% y-o-y in Sep-23

- Netherlands HICP inflation declined by -0.29% year-on-year in September 2023, marking the lowest growth since July 2016 and a significant decrease from the previous month's rate of 3.4%.
- The current inflation rate stands 7.65 percentage points below the one-year average and 2.65 percentage points below the long-run average, indicating a sharp deceleration in price growth and potential risks of deflation.