Economic growth remains fragile, while concerns about global trade outlook add to geopolitical and policy uncertainty High valuations and risk concentration make markets more susceptible to sudden corrections Policy uncertainty, weak fiscal fundamentals in some countries and sluggish potential growth raise concerns about sovereign debt sustainability Credit risk vulnerabilities in some euro area households and firms could lead to weaker asset quality for banks and non-bank financial intermediaries if downside risks to growth materialise The European Central Bank (ECB)...

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By Luis de Guindos | Meeting the EU’s climate neutrality targets calls for deep structural changes and significant private funding, requiring a healthy financial system. That’s why we’ve tested how resilient banks, investment funds and insurers are to stresses arising during the green transition. ECB Vice-President Luis de Guindos explains the findings. Achieving a carbon-neutral European Union by 2050 will require a resilient financial sector to provide the funding for the necessary investment. In other words, the financial system needs...

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The Council today adopted new rules on clearing services that revise the European market infrastructure regulation and directive (EMIR). The new rules aim to make the EU clearing landscape more attractive and resilient, to support the EU’s open strategic autonomy and to preserve the EU’s financial stability. The European Market Infrastructure Regulation (EMIR) lays down rules on over-the-counter (OTC) derivatives, central counterparties (CCPs) and trade repositories. The new rules improve EU clearing services by streamlining and shortening procedures, improving consistency between rules and strengthening CCP supervision. In...

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Speech by Christine Lagarde, President of the ECB, at "Les Essentiels des Bernardins", Paris It is both an honour and a privilege to address you at the esteemed Collège des Bernardins, a site rich in history and intellectual tradition. As I stand in this restored medieval college, I am reminded of the profound role that monastic institutions have played in spreading Christian values throughout Europe. In these environments, ideals of social responsibility flourished through communal living. The principle of “ora et labora”...

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Today, the Council gave the final green light to a regulation establishing the first EU-level certification framework for permanent carbon removals, carbon farming and carbon storage in products. This voluntary framework will facilitate and encourage high-quality carbon removal and soil emission reduction activities in the EU, as a complement to sustained emission reductions.   Carbon removals and soil emission reductions The regulation will be the first step in introducing a comprehensive certification framework for carbon removals and soil emission reductions into EU legislation. It will help the EU to achieve its...

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