The European Parliament's Economic and Monetary Affairs Committee held a Monetary Dialogue with ECB President Christine Lagarde on 22 June 2026, exposing divisions over the pace of interest rate cuts. Lagarde defended the ECB's current rate path, citing progress on inflation but cautioning that wage dynamics remain a risk. EPP's Markus Ferber pushed back against premature easing, warning that cutting rates too early could undo gains. In contrast, S&D's Jonás Fernández called for more accommodative policy to support growth, while Greens-EFA's Rasmus Andresen questioned the impact of high rates on green investment.
The committee also heard from ESM Managing Director Pierre Gramegna, who presented the revised lending toolkit. ECR's Johan Van Overtveldt questioned the facility's conditionality, reflecting ongoing concerns about fiscal discipline.
In a separate debate on the 2027 EU budget, Budget Commissioner Piotr Serafin outlined priorities including defence and competitiveness. Renew's Valérie Hayer called for more own resources to fund EU priorities, while The Left's Manon Aubry criticised cuts to social spending. The committee will vote on its budget amendments in September.
The debate highlights a cleavage between those prioritising inflation control (EPP, ECR) and those favouring growth and green investment (S&D, Greens-EFA, The Left). Financial markets face uncertainty over the timing of rate cuts, while EU member states and beneficiaries of EU programmes await clarity on budget allocations.