European Central Bank – annual report 2025

Tabled by Rada Laykova, Siegbert Frank Droese

Added: 18a. Points out that the protracted period of low and zero interest rates over the last decade has undermined creative destruction and economic evolution, as it prevented inefficient companies from being forced to exit the market, because they were able to stay afloat by taking out very cheap loans, which ultimately contributed to the lack of competitiveness of the EU economy, since this undermined this vital evolutionary economic process and led to material and human resources being tied up by very inefficient companies (‘zombie companies’) that would otherwise have disappeared from the market long ago;

Wording as published by the EP, in English. PE782.063v01-00