Following years of preparation, the end of 2021 marked a major milestone in the transition away from LIBOR. The FSB welcomes the smooth transition to robust alternative rates across global markets, primarily overnight risk-free or nearly risk-free rates (RFRs). The absence of any significant market disruptions is a testament to the magnitude of market participants’ efforts and the level of attention from the regulators and industry bodies to support the transition to RFRs. The statement notes that all GBP, EUR, CHF,...

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Keynote speech by Luis de Guindos, Vice-President of the ECB, at the Joint conference of the ECB and the European Commission on European financial integration | Frankfurt am Main, 6 April 2022 | Introduction It is my great pleasure to open today’s conference. I would like to use this opportunity to reflect on some important developments in financial integration that have taken place over the last two years, and assess them from the perspective of an EU financial system for the...

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Variation in the Inflation Experiences of Households | Governor Lael Brainard at the Spring 2022 Institute Research Conference, Opportunity and Inclusive Growth Institute, Federal Reserve Bank of Minneapolis, Minneapolis, Minnesota (via webcast) | It is a pleasure to join you to discuss differences in how households at different income levels experience inflation.1 I look forward to hearing from the panelists, who are doing important and interesting research on this topic. By law, the Federal Reserve is assigned the responsibility to pursue...

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Good afternoon to you all, We have a vision of a better Europe in 2050, where pollution is brought down to levels no longer harmful to human health. We have defined it in the Zero Pollution Action Plan, which is part of the European Green Deal. When we adopted this action plan last year it was widely welcomed, but people wondered how it will work in practice. Today we're showing what it means, with a significant strengthening of the rules...

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Main results War in Ukraine and sanctions against Russia The Council discussed the implementation of the sanctions imposed by the EU on Russia, their effectiveness (with the aim of preventing any circumvention) and their strengthening. The ministers also discussed the economic issues related to the reception of Ukrainian refugees. Ministers then welcomed Serhii Marchenko, Minister for Finance of Ukraine, who participated in his first ECOFIN meeting by video conference. The Council was able to reaffirm its full solidarity with the Ukrainian people...

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The Council today adopted legislative amendments making it possible for member states to redirect resources from cohesion policy funds and the Fund for European Aid for the Most Deprived (FEAD) to assist the refugees escaping the Russian military aggression against Ukraine. The swift amendment of the legislation on EU funds is a clear statement of the EU’s continued solidarity with the refugees from Ukraine and with the member states hosting them, in particular those sharing borders with Ukraine. This is an...

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Don’t expect easy answers or simple rules. Projecting growth, deficits, and interest rates is just the beginning When does the level of debt become unsafe? To answer this question, we need a definition of “unsafe.” I propose the following: Debt becomes unsafe when there is a non-negligible risk that, under existing and likely future policies, the ratio of debt to GDP will steadily increase, leading to default at some point. The natural way to proceed is then straightforward. The dynamics of the debt...

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