A robust post-COVID-19 recovery will depend on banks having sufficient capital to provide credit. While most European banks entered the pandemic with strong capital levels, they are highly exposed to economic sectors hit hard by the pandemic. A new IMF study assesses the impact of the pandemic on European banks’ capital through its effect on profitability, asset quality, and risk exposures. The approach differs from other recent studies—by the European Central Bank and European Banking Authority—because it incorporates policy support provided to banks and borrowers....

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The EU Commission today adopted the first annual work programme of Erasmus+ 2021-2027. With a budget of €26.2 billion, (compared to €14.7 billion for 2014-2020), complemented with about €2.2 billion from EU's external instruments, the new and revamped programme will fund learning mobility and cross-border cooperation projects for 10 million Europeans of all ages and all backgrounds. It will seek to be even more inclusive and to support the green and digital transitions, as set out in the European Education Area....

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New rules on transparency and sustainability are set to transform the way EFSA carries out its role as risk assessor in the EU food safety system. A new regulation passed by the European Parliament and Council of the EU, which will apply from 27 March, will bolster the Authority’s ability to carry out its risk assessments in accordance with the highest transparency standards. The regulation will strengthen the reliability and transparency of the scientific studies submitted to EFSA and reinforce the governance...

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Today, the Commission presented an Action Plan for the development of organic production. Its overall aim is to boost the production and consumption of organic products, to reach 25% of agricultural land under organic farming by 2030, as well as to increase organic aquaculture significantly. Organic production comes with a number of important benefits: organic fields have around 30% more biodiversity, organically farmed animals enjoy a higher degree of animal welfare and take less antibiotics, organic farmers have higher incomes and...

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Creating an emergency Rapid Response Forum to ensure global supplies of essential goods continue to flow during major international crises is one of a broad range of recommendations contained in a new OECD report to the G7 on building economic resilience. Fostering Economic Resilience in a World of Open and Integrated Markets says the devastating impacts of the Global Financial Crisis and now the COVID-19 pandemic will continue to leave lasting scars on our economies and societies. With the risk...

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For technology to benefit everyone, private sector innovation needs to be supported by public goods Digital technology is transforming the financial industry, changing the way payments, savings, borrowing, and investment services are provided and who provides them. Fintech and Big Tech companies now compete with banks and other incumbents across a range of markets. Meanwhile, digital currencies promise to transform the heart of finance: money itself. But just how much has technology advanced financial inclusion? For sure, in the past year...

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The EU Commission has published its first preliminary assessment of the impact of SURE, the €100 billion instrument designed to protect jobs and incomes affected by the COVID-19 pandemic. The report finds that SURE has been successful in cushioning the severe socio-economic impact resulting from the COVID-19 crisis. It has helped to ensure that the increase in unemployment in the beneficiary Member States during the crisis has been significantly smaller than during the global financial crisis, despite them experiencing a...

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1. Introduction A phenomenon referred to as the “paradox of banknotes” has been observed in the euro area; in recent years, the demand for euro banknotes has constantly increased while the use of banknotes for retail transactions seems to have decreased. Recent payment surveys indicate that the share of cash transactions in the euro area has decreased. This, together with ongoing digitalisation in retail payments, might have been expected to lead to a decrease in the demand for cash. However, this reduction in...

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Today, the Council of the OECD composed of Ambassadors representing the 37 Member Countries, took the formal decision to appoint Mr. Mathias Cormann of Australia to become the sixth Secretary-General of the Organisation, for a 5 year-term beginning on 1 June 2021. Member countries took this decision following the conclusion of the seven-month Selection Process led by the Dean of the Council, and chair of the Selection Committee, Ambassador Christopher Sharrock of the United Kingdom, that began in August 2020....

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