AI will affect almost 40 percent of jobs around the world, replacing some and complementing others. We need a careful balance of policies to tap its potential Kristalina Georgieva We are on the brink of a technological revolution that could jumpstart productivity, boost global growth and raise incomes around the world. Yet it could also replace jobs and deepen inequality. The rapid advance of artificial intelligence has captivated the world, causing both excitement and alarm, and raising important questions about its potential...

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Households' financial investment increased at annual rate of 1.9% in third quarter of 2023, after 2.1% in previous quarter Non-financial corporations' financing grew at broadly unchanged rate of 0.7% Non-financial corporations' gross operating surplus increased at annual rate of 2.2%, after 5.9% in previous quarter Chart 1 Household financing and financial and non-financial investment (Annual growth rates) Sources: ECB and Eurostat. Chart 2 Data for household financing and financial and non-financial investmentNFC gross-operating surplus, non-financial investment and financing (annual growth rates) Source: ECB and Eurostat. Data for NFC gross-operating surplus, non-financial investment and...

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Background: The Global Minimum Tax (GMT) represents a major step forward in international cooperation on the taxation of multinational enterprises (MNEs). It will ensure that MNEs with revenues above EUR 750 million are subject to a 15% effective minimum tax rate wherever they operate. The GMT, introduced by the Global Anti-Base Erosion (GloBE) Rules, is a key part of Pillar Two of the two-pillar solution. Agreed by over 135 member jurisdictions of the OECD/G20 Inclusive Framework on Base Erosion...

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Member states’ EU ambassadors today agreed on the Council’s partial negotiating mandate on the proposed Strategic Technologies for Europe Platform (STEP). The platform will support investments in critical technologies in the fields of digital and deep tech, clean tech and biotech in the EU. It will reduce the EU’s strategic dependencies and enhance its long-term competitiveness. The Council’s negotiating mandate is partial, because its position on additional financial support for STEP will depend on the final outcome of the horizontal negotiations...

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Cheaper cross-border payment services would benefit people and economies worldwide Kieran Murphy January 3, 2024 Faster, cheaper, and more transparent cross-border payment services have the potential to improve many lives by supporting economic growth, international trade, global development, and financial inclusion. The Group of Twenty has prioritized such progress. That’s because the financial links between countries, particularly between emerging market and developing economies, face several challenges that must be addressed, including high costs and inconsistent charges depending on the countries being linked, as we explore...

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Inflation in the eastern euro area: reasons and risks 10 January 2024 By Matteo Falagiarda Within the euro area, countries in central and eastern Europe have recently experienced the highest inflation rates. But why, exactly? The ECB Blog looks at the reasons for these higher prices and highlights the resulting risks and vulnerabilities. Since 2021 inflation in euro area countries in central and eastern Europe (EACEE) has significantly outpaced that of the euro area as a whole. The differentials have narrowed in recent months...

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New experimental statistics on distribution of household wealth in euro area provide quarterly information to policy makers, in line with national accounts First new data show that household net wealth in euro area increased by 29% over last five years, with homeowners’ net wealth increasing more than that of non-homeowners Inequality, as measured for example by share of wealth held by top 5% versus bottom 50%, decreased slightly over past five years The European Central Bank (ECB) has today...

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ECB Blog post |  Catastrophes caused by climate change, such as rising sea levels or more frequent extreme weather events, will harm our economies. And this will put a strain on the finances of people, companies and governments alike. Because of the risks to individual banks, banking supervisors have already taken steps to enhance how banks identify, assess and manage these institution-specific risks. Such supervisory measures are necessary steps focusing on the risks that climate change may pose to individual...

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Beginning in the 18th century, the Industrial Revolution ushered in a series of innovations that transformed society. We may be in the early stages of a new technological era—the age of generative artificial intelligence (AI)—that could unleash change on a similar scale. History, of course, is filled with examples of technologies that left their mark, from the printing press and electricity to the internal combustion engine and the internet. Often, it took years—if not decades—to comprehend the impact of these...

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