Inflation preparedness in the EU

The recent inflation episode in 2021-23 has exposed the vulnerability of European economies to supply-side shocks and the inadequacy of existing monetary tools to deal with them. Moreover, companies used their monopoly power, amplified due to bottlenecks and supply disruptions, to reap abnormally high profits, thus exacerbating the initial inflationary effects of the shocks. The failure to deal with inflation in a timely manner led to a very painful cost-of-living crisis, still affecting many households.

The EU needs to create an inflation governance framework that would involve not just ECB monetary policy, but a complex of measures on inflation preparedness, prevention, reduction and mitigation. This framework can include price controls, income support, excess profit taxes, limiting speculation, increasing price transparency, building strategic reserves, and reducing fossil fuel dependency, among many more others. 

Therefore, on 3 September 2025 between 14:00 – 17:30, in collaboration with the European Economic and Social Committee (EESC), Fondazione Pietro Nenni and TASC, we discussed lessons learned from the recent inflation episode and the new inflation governance framework that needs to be developed to prevent or mitigate the supply side inflation shocks in the future. 

Among our confirmed speakers are:

• ⁠Mohammed Chahim, Member of the European Parliament and Vice-Chair, S&D Group 
• Ioannis Vardakastanis, President of the ECO section, European Economic and Social Committee (EESC)
• Paolo Pasimeni, Senior Associate Researcher, Brussels School of Governance, Vrije Universiteit Brussel (VUB)
• Ludovic Voet, Confederal Secretary, European Trade Union Confederation (ETUC)
• Elena Calistru, Member, European Economic and Social Committee (EESC) 
• Jérôme Creel, Director, Research Department, Sciences Po, OFCE & Associate Professor of Economics, ESCP 
• Ines Heck, Lecturer in Economics, University of Greenwich
• Thomas Rabensteiner, Lecturer in Economics, University of Greenwich 
• Anna Kolesnichenko, Economic Policy Analyst, Foundation for European Progressive Studies
• Sebastian Mang, Programme Lead, EU Policy, New Economics Foundation

The event started with a presentation of FEPS recent policy study on the topic, focusing on inflation in energy and food – the sectors with the largest systemic significance and key to the cost-of-living crisis. In a second session, we discussed what a new inflation governance framework should look like and how to develop it.

The event was public and livestreamed.

For more information, please do not hesitate to contact Luis Sáez Jiménez, FEPS Project Officer (luis.saez@feps-europe.eu).