European Central Bank (ECB) Vice-President Luis de Guindos argued on Tuesday, the 21st, that the institution must exercise caution regarding monetary policy and interest rates, despite pressures from conflicts in Ukraine and Iran. Speaking at a breakfast event organised by the Spanish newspaper La Razón, De Guindos stated that monetary policy must remain prudent and attentive to the duration and implications of these conflicts. He acknowledged that monetary policy cannot stop the initial impact of inflation, noting that energy price hikes are beyond the control of central banks. De Guindos emphasised that monetary policy is not omnipotent, as government measures and conflict developments also play a role. He warned against downplaying the war in Ukraine, describing it as an existential threat to Europe, while noting that attention is shifting toward the Middle East. He also highlighted the need for increased defence investment as the US commitment to European security wavers, and lamented the lack of a banking union for goods and services, alongside political divisions within the European Parliament.