Prepared by Pablo Anaya Longaric, Alessandro De Sanctis, Charlotte Grynberg, Vasileios Kostakis and Francesca Vinci Published as part of the ECB Economic Bulletin, Issue 8/2024.   1 Introduction The surge in energy prices following the unjustified Russian invasion of Ukraine exposed the EU to the largest energy shock since the 1970s. As a key input in virtually any production process, the sharp rise in energy prices not only contributed to a surge in inflation and a loss of purchasing power for households but also to...

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By Julie Cooper and Tim Youngberry | New Public Financial Management (NPFM) emerged in the 1980s as a transformative approach to public sector governance, aimed at enhancing efficiency, accountability, and responsiveness. Rooted in principles drawn from private sector management, NPFM promotes results-oriented practices such as performance-based budgeting, measurable outcomes, and decentralized management. Its objectives align closely with those of traditional PFM: ensuring fiscal discipline, strategically allocating resources, and delivering services efficiently and effectively. However, while NPFM's objectives are commendable and...

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Prepared by Alina Bobasu, Johannes Gareis and Grigor Stoevsky | Following a pandemic-related surge in 2020, the household saving rate in the euro area fell back to its pre-pandemic average by mid-2022 but has since risen again noticeably. The seasonally adjusted euro area household saving rate, as reported by Eurostat in the quarterly sector accounts, rose sharply after the outbreak of the COVID-19 pandemic. This was mainly due to the lockdowns imposed to contain the spread of the virus, which dampened...

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On 27 November 2024, in a speech to the European Parliament, President of the European Commission Ursula von der Leyen announced her decision to convene a Strategic Dialogue on the Future of the Automotive Industry in Europe. The Dialogue will be officially launched already in January 2025, with a view to swiftly proposing and implementing measures the sector urgently needs. Commission President, Ursula von der Leyen, said: “The automotive industry is a European pride and is crucial for Europe's prosperity. It drives innovation, supports millions of...

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Cash most frequently used payment method in stores, although use has continued to decline Share of digital payment instruments continues to increase in value terms, with cards still dominant and share of mobile apps on the rise Majority of consumers value having option to pay with cash The European Central Bank (ECB) today published the results of the latest study on the payment attitudes of consumers in the euro area (SPACE). Despite the trend towards digital payments, the number...

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Blog post by Colm Bates, Vasco Botelho, Sarah Holton, Marc Roca I Llevadot and Mirko Stanislao | The growth of negotiated wages is expected to ease in 2025. This is the information emerging from the ECB wage tracker, which we will publish on a regular basis from now on. The ECB Blog explains the tool and how it can help monitor wage pressures in the euro area. Wages are an important driver of domestic goods and services inflation. Most wages are...

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Europe's industry has increased its investment in research and development (R&D) by 9.8% in 2023, surpassing the growth of corporate R&D investment in the US (+5.9%) and China (+9.6%) for the first time since 2013, according to the new edition of the EU Industrial R&D Investment Scoreboard published today. In 2023, the EU was second globally in R&D private investment (18.7%), trailing the US (42.3%), but ahead of China (17.1%), Japan (8.3%) and countries in the rest of the world (13.6%)....

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