Speech by Christine Lagarde, President of the ECB, at the Brussels Economic Forum 2021 | Frankfurt am Main, 29 June 2021 | Thank you for inviting me to speak to you today. The economist Rudi Dornbusch once said that “in economics, things take longer to happen than you think they will, and then they happen faster than you thought they could.” That describes the situation we face today very well. The pandemic has accelerated pre-existing trends at a pace we could never...

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New Value-Added Tax (VAT) rules for online shopping enter into force later this week* as part of efforts to ensure a more level playing field for all businesses, to simplify cross-border e-commerce and to introduce greater transparency for EU shoppers when it comes to pricing and consumer choice. The EU's VAT system was last updated in 1993 and has not kept pace with the rise in cross-border e-commerce that has transformed the retail sector in recent years. The Coronavirus pandemic has...

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The results show that large banks continue to have strong capital levels and could continue lending to households and businesses during a severe recession. The Federal Reserve Board on Thursday released the results of its annual bank stress tests, which showed that large banks continue to have strong capital levels and could continue lending to households and businesses during a severe recession. "Over the past year, the Federal Reserve has run three stress tests with several different hypothetical recessions and all...

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The webinar looked at the state of digital transformation in European regions, taking stock of the latest research showing an increasing digital divide across European regions and urban-rural communities. Invited speakers shared their views on how public authorities at all levels can facilitate the digital transition of small and medium enterprises (SMEs), showcasing some best practices and collaboration initiatives from the European Entrepreneurial Regions. In the opening session, Mr Ivan Štefanec, Member of the European Parliament and President of SME Europe, identified three...

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EU carbon sinks will de facto raise 2030 emissions reduction target to 57% Greenhouse gas budget must guide 2040-target New independent EU scientific body to monitor progress The new EU Climate Law increases the EU’s 2030 emissions reductions target from 40% to at least 55%. With the contribution from new carbon sinks it could raise to 57%. Parliament endorsed the Climate Law, agreed informally with member states in April, with 442 votes to 203 and 51 abstentions. It transforms the European Green...

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The European Commission has today extended – by one additional year –the current transitional regime regarding the capital requirements that EU banks and investment firms must maintain when exposed to non-EU central counterparties (‘CCPs'). This transitional regime will therefore continue to apply until 28 June 2022. Mairead McGuinness, EU Commissioner responsible for financial services, financial stability and Capital Markets Union said, “Today's decision gives us a bit more breathing space while we continue to work on equivalence decisions. It also gives EU...

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Rising world food prices for producers are making headlines and causing concerns among the public. The most recent data show a moderation in consumer food price inflation globally, but as we explain below, that could change in the coming months. This would only add to the high prices that consumers in many countries already lived through last year. If prices eventually rise again, there will likely be sizeable differences between countries. Due to various factors, it is probable that the effect...

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The Commission is today laying out a vision to build a new Joint Cyber Unit to tackle the rising number of serious cyber incidents impacting public services, as well as the life of businesses and citizens across the European Union. Advanced and coordinated responses in the field of cybersecurity have become increasingly necessary, as cyberattacks grow in number, scale and consequences, impacting heavily our security. All relevant actors in the EU need to be prepared to respond collectively and exchange relevant...

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Transition away from LIBOR requires significant commitment and sustained effort from both financial and non-financial institutions across many LIBOR and non-LIBOR jurisdictions. The Financial Stability Board has identified that continued reliance of global financial markets on LIBOR poses clear risks to global financial stability. On 5 March 2021, ICE Benchmark Administration (IBA) and the UK Financial Conduct Authority (FCA) formally confirmed the dates that panel bank submissions for all LIBOR settings will cease, after which representative LIBOR rates will no longer be available. The...

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