Increasing impact of climate crisis on economy and financial system drives need for more action ECB reaffirms commitment to ongoing climate actions and will review them regularly Three focus areas to guide work for 2024 and 2025: implications of green transition, physical impact of climate change, and nature-related risks for the economy and financial system The European Central Bank (ECB) has decided to expand its work on climate change, identifying three focus areas that will guide its activities in...

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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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