Looking back, I would define 2021 as a year of transitions. Geopolitical changes have intensified with power politics repeatedly challenging the EU and its values. We must respond with all the determination we can muster. The pandemic has carried on longer than we imagined a year ago and the omicron variant is yet again requiring the introduction of major restrictions and threatening the recovery. Still, we know that vaccines are making a major difference. Thanks to the common purchase mechanism,...

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Today, the EU Commission issues policy guidance for a fair and inclusive transition towards climate neutrality to complement the package on delivering the Green Deal presented in July. The proposed Council Recommendation sets out specific guidance to help Member States devise and implement policy packages that ensure a fair transition towards climate neutrality, by addressing the relevant employment and social aspects linked to the transition in a comprehensive manner. The proposal pays particular attention to addressing the needs of the...

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A Japanese automobile manufacturer builds an assembly plant in Mexico. An Italian software company opens a sales office in Kenya to reach the Kenyan market with their services. A large Australian mining company acquires a smaller Angolan one for diversification. All are examples of foreign direct investment where a business decision is made to somehow take a stake or interest in a company by an investor located outside its borders. According to the latest results of our Coordinated Direct Investment Survey , and...

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To support the transition to cleaner, greener, and smarter mobility, in line with the objectives of the European Green Deal, the Commission today adopted four proposals that will modernise the EU's transport system. By increasing connectivity and shifting more passengers and freight to rail and inland waterways, by supporting the roll-out of charging points, alternative refuelling infrastructure, and new digital technologies, by placing a stronger focus on sustainable urban mobility, and by making it easier to choose different transport options...

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Policymakers must strike the right balance in the face of high debt and rising inflation. In 2020, we observed the largest one-year debt surge since World War II, with global debt rising to $226 trillion as the world was hit by a global health crisis and a deep recession. Debt was already elevated going into the crisis, but now governments must navigate a world of record-high public and private debt levels, new virus mutations, and rising inflation. Global debt rose by...

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As e-money use grows, regulators need to focus on consumer protection and the integrity of the overall payments system. Imagine you go to pay for your morning coffee and your stored-value card returns an error message, or the wallet in the payments app on your phone isn’t opening because the company providing the payment service has gone bankrupt. Worse, what if you live in a rural area and the e-money service provided through your mobile phone was the only access...

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The impact of the COVID-19 pandemic on tax revenues was less pronounced than during previous crises, in part due to government support measures introduced to support households and businesses, according to new OECD research published today. The 2021 edition of the OECD’s annual Revenue Statistics publication shows that the OECD average tax-to-GDP ratio has risen slightly to 33.5% in 2020, an increase of 0.1 percentage points since 2019. Although nominal tax revenues fell in most OECD countries, the falls in countries’...

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Today, European Commission Executive Vice-President Margrethe Vestager, US Federal Trade Commission Chair Lina Khan and the Assistant Attorney General for Antitrust of the US Department of Justice Jonathan Kanter have launched the EU-US Joint Technology Competition Policy Dialogue in Washington DC. The European Commission, the US Federal Trade Commission and the US Department of Justice have issued a joint statement. Margrethe Vestager, European Commission Executive Vice-President in charge of competition policy, said: “The European Commission and the US competition authorities have a longstanding tradition...

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The IMF’s mandate is to safeguard the stability of the international monetary and financial system, and crypto assets are changing the system profoundly. Crypto assets and associated products and services have grown rapidly in recent years. Furthermore, interlinkages with the regulated financial system are rising. Policymakers struggle to monitor risks from this evolving sector, in which many activities are unregulated. In fact, we think these financial stability risks could soon become systemic in some countries. 'Uncoordinated regulatory measures may facilitate potentially...

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The European Commission has today proposed a new tool to counter the use of economic coercion by third countries. This legal instrument is in response to the EU and its Member States becoming the target of deliberate economic pressure in recent years. It strengthens the EU's toolbox and will allow the EU to better defend itself on the global stage. The aim is to deter countries from restricting or threatening to restrict trade or investment to bring about a change of policy...

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