Policy focus must shift to repairing public finances and improving medium-term growth prospects. The clouds are beginning to part. The global economy begins the final descent toward a soft landing, with inflation declining steadily and growth holding up. But the pace of expansion remains slow, and turbulence may lie ahead. Global activity proved resilient in the second half of last year, as demand and supply factors supported major economies. On the demand side, stronger private and government spending sustained activity, despite...

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Today the Council adopted its negotiating mandate for talks with the European Parliament on a proposal to phase out the use of dental amalgam and prohibit the manufacturing, import and export of a number of mercury-added products, including certain lamps. The proposal addresses the residual remaining uses of mercury in products in the EU, with a view to establishing a mercury-free Europe. The negotiating mandate, which was agreed at Coreper level, sets out the Council’s position for the start of negotiations (‘trilogues’)...

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The misalignment with the EU climate transition pathway can lead to material financial, legal and reputational risks for banks. It is therefore crucial for banks to identify, measure and − most importantly − manage transition risks, just as they do for any other material risk writes Frank Elderson, member of the Executive Board of the ECB and Vice-Chair of the Supervisory Board of the ECB. Eight years ago in Paris, global leaders reached a landmark agreement, committing to limit the...

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The Commission adopted five initiatives to strengthen the EU's economic security at a time of growing geopolitical tensions and profound technological shifts. The package aims to enhance the EU's economic security while upholding the openness of trade, investment, and research for the EU's economy, in line with the June 2023 European Economic Security Strategy. Today's proposals are part of a broader three-pillar approach to EU economic security by promoting the EU's competitiveness, protecting against risks and partnering with the broadest possible range of countries to advance shared...

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The Governing Council today decided to keep the three key ECB interest rates unchanged. The incoming information has broadly confirmed its previous assessment of the medium-term inflation outlook. Aside from an energy-related upward base effect on headline inflation, the declining trend in underlying inflation has continued, and the past interest rate increases keep being transmitted forcefully into financing conditions. Tight financing conditions are dampening demand, and this is helping to push down inflation. The Governing Council is determined to ensure...

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The Council has today adopted its position (negotiating mandate) on the regulation prohibiting products made with forced labour on the EU market. The negotiating mandate of the Council supports the overall objective of combatting forced labour, and it introduces several improvements to the proposed text. The Council mandate clarifies the scope of the regulation by including products offered for distance sales, envisages the creation of a forced labour single portal, and reinforces the role of the Commission in investigating and...

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Workers will be better represented in EU-based multinational companies thanks to new rules for the so-called European Works Councils (EWCs). These Councils ensure that employees are involved in decisions related to transnational issues, like re-structurings. They help workers anticipate and manage changes in the world of work, including labour shortages and new technologies. Around 1,000 EWCs currently represent nearly 11.3 million European employees. While these Councils represent more than half of the eligible workforce, this is still less than a third of the estimated almost...

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The Council and Parliament found a provisional agreement on parts of the anti-money laundering package that aims to protect EU citizens and the EU's financial system against money laundering and terrorist financing. "This agreement is part and parcel of the EU’s new anti-money laundering system. It will improve the way national systems against money laundering and terrorist financing are organised and work together. This will ensure that fraudsters, organised crime and terrorists will have no space left for legitimising their...

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Global growth is set to slow further this year, amid the lagged and ongoing effects of tight monetary policy, restrictive financial conditions, and feeble global trade and investment. Downside risks to the outlook include an escalation of the recent conflict in the Middle East and associated commodity market disruptions, financial stress amid elevated debt and high borrowing costs, persistent inflation, weaker-than-expected activity in China, trade fragmentation, and climate-related disasters. Against this backdrop, policy makers around the world face enormous...

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