Competition policy – annual report 2024

Tabled by Pasquale Tridico

… the delayed pass-through of the rapid monetary policy tightening to deposit rates; Added: expresses concern about the ultra-privileged rate on the excess liquidity of banks deposited into the European Central Bank (ECB), which allows profits to accumulate; highlights that the distribution of these windfall profits to banks has been unequal across Member States; calls on the Commission to propose measures to ensure that ECB policies do not disproportionately benefit certain banks or increase inequalities between euro area countries; proposes the consideration of policy tools to mitigate such distortions in bank profitability, including an increase of unremunerated reserve requirements, as suggested by the Governor of the Austrian Central Bank, to absorb excess liquidity without further remunerating it1a; notes that several Member States have introduced windfall taxes on banks’ extraordinary profits to address these disparities; encourages the ECB to assess the implications of such measures and explore coordinated approaches to ensure a balanced and equitable financial environment across the euro area; 1a https://www.reuters.com/markets/europe/ecb-needs-stop-subsidizing-banks-holzmann-says-2024-04-03/ https://www.bloomberg.com/news/articles/2025-03-20/ecb-s-holzmann-renews-idea-of-tenfold-hike-in-minimum-reserves?

Wording as published by the EP, in English. PE772.536v01-00