MADRID, Jan 28 (Reuters) – Rising geopolitical tensions are firming the case for Europe to develop payment systems fully under its own control, European Central Bank Executive Board member Piero Cipollone said in an interview published on Wednesday in Spanish newspaper El Pais.<\/p>\n
Cipollone said the growing “militarisation” of economic and technological tools was increasing global vulnerabilities and underscored the need for a European payments infrastructure based entirely on European technology.<\/p>\n
Sign up here.<\/a><\/p>\n “We need a system that is totally under our control. This is what we are doing with the digital euro,” he said.<\/p>\n Europe lacks a cross-border payments champion able to rival U.S. duopoly Visa and Mastercard.<\/p>\n Asked whether the attacks on Federal Reserve Chair Jerome Powell’s independence \u2014 which had prompted public support<\/a> from ECB President Christine Lagarde and other central bankers \u2014 could have an impact on monetary policy decisions, Cipollone said the ECB remains focused on the euro\u2011area economy.<\/p>\n “We are the central bank of the euro area, not of the United States,” he said.<\/p>\n “We set interest rates to ensure price stability \u2014 a 2% inflation target over the medium-term. What happens elsewhere matters only if it affects inflation in the euro zone.”<\/p>\n Cipollone said the euro\u2011area economy has so far proven resilient and expected figures that could top forecasts<\/a>.<\/p>\n He noted that the latest upwards revision was due essentially to investment, which not only boosts demand but also expands productive capacity, supporting faster growth without compromising price stability.<\/p>\n But he warned that geopolitical uncertainty is rising and could weigh on the recovery.<\/p>\n “If uncertainty persists, it could undermine investment,” he said.<\/p>\n “This would affect growth and, inevitably, inflation. If it persists, it will have an impact on the real economy.”<\/p>\n Reporting by Jes\u00fas Aguado; editing by Pietro Lombardi; Editing by Sam Holmes<\/p>\n Our Standards: The Thomson Reuters Trust Principles., opens new tab<\/a><\/p>\n