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 will discuss 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. 

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

The event is public and will be livestreamed. Kindly note that, since it is hosted at the EESC, only registered participants will be able to attend. Register now and secure your spot! 

For more information, please do not hesitate to contact Vanessa Zwisele, FEPS Project Officer (vanessa.zwisele@feps-europe.eu).