The European Green Deal at the core of the EU’s and EMU’s sustainability

An initial convergence of preferences made the European Green Deal (EGD) possible. However, the revision of all policy areas in line with the objectives and a conducive trajectory of the green transition is proving a major challenge, above all because member state policies and actions are not consistent with the long-term policy objectives they had subscribed to in the first place. On the upside, EU institutions, notably the European Commission and the European Central Bank (ECB), have been responding to the challenge by adapting rules and policies, which will have a positive effect in the long run. To deliver price stability the ECB needs to take into account all factors affecting inflation and climate change is one of them. Besides the primary objective of keeping prices stable, the ECB’s secondary objectives, notably contributing to a high level of protection and improvement of the quality of the environment, are fundamental to ensure not only environmental sustainability but also EMU’s and the EU’s sustainability. However, those rules and policies also depend on the wider EU regulatory framework, which needs the approval of member states.