European Central Bank (ECB) Executive Board member Piero Cipollone has advocated for the development of a fully independent European payment system. In an interview published Wednesday, Cipollone emphasised that rising geopolitical tensions necessitate Europe having a payment infrastructure based entirely on its own technology. He noted the increasing “militarisation” of economic and technological tools globally creates vulnerabilities. Cipollone stated that the ECB is working toward this goal with the digital euro project, seeking a system entirely under European control.
Currently, Europe lacks a cross-border payments system capable of rivaling the U.S. duopoly of Visa and Mastercard. Cipollone addressed concerns regarding attacks on the independence of Federal Reserve Chair Jerome Powell, stating that the ECB remains focused on the euro-area economy. He reiterated that the ECB’s primary objective is to ensure price stability within the Eurozone, targeting a 2% inflation rate over the medium term.
Cipollone acknowledged the resilience of the euro-area economy, suggesting that upcoming figures may exceed expectations. The latest upward revision is largely attributed to investment, which boosts demand and expands productive capacity, supporting growth without compromising price stability. However, he cautioned that increasing geopolitical uncertainty could negatively impact the recovery.
He warned that persistent uncertainty could undermine investment, affecting both growth and inflation. According to Cipollone, continued geopolitical instability will inevitably have a tangible impact on the real economy within the Eurozone, reinforcing the need for an independent and secure financial infrastructure.
