Countries must shift toward fiscal discipline and reforms that raise long-term growth. Many highly indebted advanced economies face a grim fiscal outlook. Under current policies, the public debt ratios of countries including Belgium, France, the United Kingdom, and the United States are set to deteriorate over the next two decades. They still have room to borrow, but there are limits. So far, financial markets have been forgiving. But recent tremors suggest that they may become more sensitive to negative news about...

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New category of company that falls between SMEs and large enterprises EP proposes thresholds of 1,000 employees, €200M in turnover or €172M in total assets to define small mid-caps New laws seek to boost the competitiveness of EU so-called small “mid-cap” (SMC) enterprises as they grown beyond SME status with targeted measures. On Wednesday, three EP committees voted to endorse proposals introducing the concept of small mid-cap enterprises (SMCs) and extending to them various exemptions that so far have been...

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With a view to boosting EU competitiveness, the Council gave today its final green light to a simplification of the sustainability reporting and due diligence requirements for companies. This legislation simplifies the directives on corporate sustainability reporting (CSRD) and corporate sustainability due diligence (CS3D) by reducing the reporting burden and limiting the trickle-down effect of obligations on smaller companies. The Omnibus I simplification package reduces complexity and unnecessary barriers, cuts red tape, enhances efficiency and introduces more flexibility for companies that remain subject to its...

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Blog  Diversification has become harder since 2020 as stocks and bonds tend to move in tandem during sharp selloffs, adding to financial stability concerns Spreading investments across asset classes can reduce risk and smooth returns. The classic diversification between stocks and bonds worked historically because they moved in opposite directions. When stocks fell, investors sought safety in bonds. Bonds rallied, cushioning losses and stabilizing portfolios. Since the start of the pandemic period—with supply shocks that fueled inflation—bonds have become less effective in...

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