The ECB reduces losses and estimates a return to revenue in 2026. Lagarde’s wage rises to 492 thousand euros | EUROtoday

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(Il Sole 24 Ore Radiocor) – The ECB closed 2025 with a lack of 1.254 billion euros, a pointy discount in comparison with the 7.944 billion recorded in 2024 thanks above all to the decline in internet curiosity bills. The loss will stay on the stability sheet and shall be offset in opposition to future earnings. As a consequence, no earnings shall be distributed to the nationwide central banks of the euro space.

The losses collected since 2022 – explains the ECB in a press release – are the consequence of the financial coverage measures adopted to fight inflation and convey it again to medium-term targets as per the mandate. These insurance policies have led the ECB to increase its stability sheet via the acquisition of economic belongings, principally at fastened charges and with lengthy maturities. This has led to a corresponding improve in liabilities on which the ECB pays curiosity at a variable charge. Therefore, rate of interest will increase in 2022 and 2023 to counter the leap in inflation instantly pushed up curiosity expenses on liabilities, whereas curiosity earnings on ECB belongings, particularly on securities bought beneath the Asset Purchase Program (PAA) and the Pandemic Emergency Purchase Program (PEPP), didn’t improve to the identical extent. Subsequent decreases in key rates of interest from 2024 and continued declines in liabilities following the maturity of securities beneath the PAA and PEPP are considerably decreasing the consequences of this rate of interest misalignment.

The ECB expects to return to revenue in 2026 or the next 12 months, “although this will depend on future levels of key interest rates and exchange rates, as well as the size and composition of the ECB’s balance sheet.” In any case, the ECB «can function successfully and fulfill its main mandate of sustaining worth stability no matter any losses. Its monetary energy is additional underlined by its internet price and its substantial revaluation accounts, which collectively amounted to €71 billion on the finish of 2025, €12 billion greater than on the finish of 2024.”

In 2025 Lagarde’s salary rises to 492 thousand euros, total board to 2.3 million

President Christine Lagarde’s base salary in 2025 was 492,204 euros, up 26,112 euros from 466,092 euros the previous year. This is what emerges from the report on the 2025 budget published today by the ECB which explains that the members of the Executive Committee and the Supervisory Board employed by the ECB receive a basic salary and a residence allowance (equal to 15% of the basic salary). In the case of the President, the residence is provided in lieu of the residence allowance.

In latest days, information additionally emerged that Lagarde earned round 140 thousand euros in 2025 as a member of the board of the Bank for International Settlements (BIS). Lagarde herself broke the information in response to a query from German and Swedish MEPs, elevating the discontent of the ECB workers for whom there’s a ban on receiving compensation from third events. As regards the fundamental salaries of the opposite 5 members of the chief committee, vice-president Luis de Guindos acquired 421,908 euros (from 399,528 in 2024) whereas for the opposite 4 members, Piero Cipollone, Frank Elderson, Philip Lane and Isabel Schnabel, the fundamental wage rose by 18,648 euros to 351,576 euros from 332,928 the earlier 12 months. The whole price of primary salaries for the Board of Directors for 2025 consequently rose to 2,320,416 euros from 2,197,332 euros in 2024. The whole price of the members of the Supervisory Board was as an alternative 1,604,632 euros (from 1,364.558 in 2024). The remuneration of the president of the supervisory board Claudia Buch was equal to that of the members of the chief board, due to this fact 351,576 euros in comparison with 332,928 within the earlier 12 months. Overall, the overall price of the 2 boards was due to this fact 3,925,048 euros, up from 3,561,890 within the earlier 12 months. Finally, the overall allowances paid to the members of each Councils and the ECB’s contributions to the medical health insurance, long-term care and accident insurance coverage schemes of their favor amounted to 1,320,276 euros, in comparison with 1,254,013 euros in 2024.