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ECB official calls for removing Single Market barriers to boost investment
ECB Executive Board member Piero Cipollone tied weaker European investment to limits on cross-border expansion and said clearer conditions support more stable interest rates for firms.
In an interview carried by ilsussidiario.net, Piero Cipollone of the European Central Bank argued that the EU should first remove restrictions that limit firms from fully exploiting the European Single Market.
Cipollone said that barriers to the free movement of goods and services within the EU prevent companies from expanding, reaching economies of scale, and lowering production costs, with knock-on effects in sectors including IT, finance, and traditional manufacturing such as autos.
He also pointed to the euro area’s current account surplus as evidence that there is scope for domestic demand to grow without creating external imbalances, adding that difficulty investing in Europe is linked to challenges expanding in the Single Market.
Cipollone further stressed the ECB’s role in maintaining price stability, saying it reduces uncertainty, helps keep nominal interest rates steadier, and supports firms’ planning, while warning of the risk of a rapid rise in cost-push inflation.