Italian Prime Minister Meloni lashed out at the European Central Bank

Italian Prime Minister Giorgia Meloni has criticized the European Central Bank for interest rate hikes, saying the European Central Bank’s (ECB) approach to fighting inflation would do more harm than good for European economies.

In his speech to parliament today, Meloni argued that euro zone inflation, which was 6.1 percent in May, was not the result of economic overheating, but the result of the impact on energy prices. caused by the war in Ukraine.

‘CONTROL ENERGY PRICES INSTEAD OF RAISING INTEREST’

Meloni said Europe should fight inflation by focusing on measures to control energy and commodity prices rather than raising interest rates further.

Describing inflation as “a hideous hidden tax that hits the poor and the fixed income,” Meloni warned that the ECB’s strategy of cooling inflation was misguided.

THE ECB IS RESISTANT

Although inflation in Italy fell to its lowest level in 14 months in June, it is still around 6.7.

High interest rates have become a particular concern for Italy, which has a crippling public debt burden.

Despite this, ECB President Cristine Lagarde said that “unless the outlook changes significantly, the ECB will raise rates again next month.”