Ending the health crisis and addressing its immediate fallout remains the top priority, but governments would also benefit from committing to fiscal responsibility. From the outset of the COVID-19 pandemic, governments have extended massive fiscal support that has saved lives and jobs. As a result, public debt has reached a historic high, although it is expected to decrease marginally in the next few years. These developments raise questions about how high debt can go without being disruptive. Commitment to budget discipline and...

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Humans should supervise AI systems and algorithms should be open Ban private facial recognition databases, behavioural policing and citizen scoring Automated recognition should not be used for border control or in public spaces To combat discrimination and ensure the right to privacy, MEPs demand strong safeguards when artificial intelligence tools are used in law enforcement. In a resolution adopted by 377 in favour, 248 against and 62 abstentions, MEPs point to the risk of algorithmic bias in AI applications and...

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A key question is what combination of events could cause persistently faster price gains. The economic recovery has fueled a rapid acceleration in inflation this year for advanced and emerging market economies, driven by firming demand, supply shortages, and rapidly rising commodity prices. We forecast in our latest World Economic Outlook that higher inflation will likely continue in coming months before returning to pre-pandemic levels by mid-2022, though risks of an acceleration do remain. Policymakers must walk a fine line between patient support for...

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Sustainable investment funds need to be scaled up to support a successful transition to a green economy The transition to net-zero greenhouse gas emissions requires unprecedented change by companies and governments, as well as additional investment of as much as $20 trillion over the next two decades. Strong fiscal policies, complemented by a broad range of regulatory and financial policies, will be necessary to facilitate the green transition. The world’s $50 trillion investment fund industry, especially funds with a sustainability focus,...

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The purchase of government bonds by emerging market central banks may be reminiscent for some of the days of monetary financing of the government, which was often followed by rising inflation and currency depreciations. However, the successful actions by several central banks in emerging Europe to buy government bonds during the COVID-19 pandemic countered this history. Amid the financial market turmoil at the start of the pandemic, central banks in Croatia, Hungary, Poland, Romania, Serbia, and Turkey rolled out asset...

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As crypto assets take hold, regulators need to step up. Crypto assets offer a new world of opportunities: Quick and easy payments. Innovative financial services. Inclusive access to previously “unbanked” parts of the world. All are made possible by the crypto ecosystem. 'Consumer protection risks remain substantial given limited or inadequate disclosure and oversight.' But along with the opportunities come challenges and risks. The latest Global Financial Stability Report describes the risks posed by the crypto ecosystem and offers some policy options to help...

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The Commission launched today five new EU missions, a new and innovative way to work together and improve the lives of people in Europe and beyond. EU missions aim to tackle big challenges in health, climate and the environment, and to achieve ambitious and inspiring goals in these areas. A novelty of Horizon Europe and also an original concept in EU policy, bringing together several Commission services under the authority of nine College members, missions will support research to deliver on the Commission's...

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Speech by Christine Lagarde, President of the ECB, at ECB Forum on Central Banking "Beyond the pandemic: the future of monetary policy" | Frankfurt am Main, 28 September 2021 | The economy is back from the brink, but not completely out of the woods. After a highly unusual recession, the euro area is going through a highly atypical recovery. This atypical recovery is leading to rapid growth, but also to supply bottlenecks appearing unusually early in the economic cycle. It is...

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Today, as part of its work to create a future-proof and crisis-resilient regulatory framework for the pharmaceutical sector, the Commission has published a public consultation on the revision of the EU's pharmaceutical legislation. This is the latest step towards an ambitious reform as announced in the Pharmaceutical Strategy for Europe, adopted in November 2020. Stella Kyriakides, Commissioner for Health and Food Safety, said: "Today we take an important step for the reform of EU's pharmaceutical legislation by the end of next year. A...

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