ECB Action Is at Risk of Being Less Effective, But More Frequent, Dolenc Says

Structural trends are threatening to confound European Central Bank policy, according to Governing Council member Primoz Dolenc.

“Negative structural trends are lowering long-term growth and increasing the susceptibility of the economy to different macroeconomic shocks, which in turn are happening more often and are more impactful,” the acting Slovenian central-bank chief said, mentioning low productivity and other problems highlighted in Mario Draghi’s 2024 report on European competitiveness.