Blog | In a world of frequent shocks, central bank communications should anchor expectations by explaining how policy responds to changing conditions, rather than committing to a fixed path. In a world of frequent and faster-moving shocks, where uncertainty is high and markets react instantly, central banks face a fundamental communications challenge: how to help the public understand monetary policy objectives while explaining how policy may evolve as economic conditions change. In this regard, explaining the policy framework, the reaction...

Once I was elected President of the European Council, I decided to visit each member state every year, to meet bilaterally with each European leader. These exchanges are first and foremost an opportunity to listen: to remain closely attuned to the concerns, priorities and expectations of the members of the European Council, and of the citizens they represent. They also allow me to share my perspective on the challenges and opportunities ahead for our union. These visits take place...

GDP (Gross Domestic Product) growth in the OECD area increased slightly to 0.5% in Q2 2026, up from 0.4% in the previous quarter, according to provisional estimates (Figure 1). This reflected a mixed picture across the 30 OECD countries for which data were available. In Q2 2026, 27 countries recorded growth, but at varying rates, while 3 saw no change in GDP. GDP growth in the G7 slowed to 0.3% in Q2 2026, down from 0.4% in Q1, reflecting slower...

Blog | The rise of AI has driven a blistering rally in the tech sector, bringing stock market valuations to levels last seen during the dot-com bubble. Although AI is reshaping the economy, do today’s high valuations bear the risk of an abrupt and painful setback in the euro area? Valuations on the US stock market, as measured by the CAPE ratio, are currently close to their historical peak. Euro area equity valuations have also risen, albeit to a lesser extent...

Governments have good reasons to use tariffs or sanctions for geopolitical purposes but should consider the trade-offs. Governments worldwide increasingly are using economic policies, such as export bans, financial sanctions, and trade tariffs, to achieve noneconomic goals. The benefits of these geoeconomic policies can be significant, accomplishing a geopolitical purpose without threatening, or using, military force—and without the high human and economic costs of war. Perhaps the world should welcome this. Yet coercive policies can be costly for nations that impose...

Overall, 92% of companies with physical points of sale accept cash Cash acceptance rebounds after decline observed during and after pandemic Cash widely valued for privacy and reliability, while acceptance of mobile payments rises sharply According to the latest survey on the use of cash by companies in the euro area published today by the European Central Bank, cash acceptance has rebounded slightly. In 2026, 92% of companies selling goods and services in physical locations in the retail trade, restaurants and cafés,...

From 12 August 2026, new rules on packaging and packaging waste apply in the EU. This will change the way products are packaged to protect the environment and people’s health. It will also create opportunities for businesses. Packaging uses large quantities of raw materials and generates waste that ends up in landfills or the sea. Some chemicals used in packaging can also be harmful. The new rules address these issues by setting requirements for the manufacturing and composition of all packaging placed on the EU market. They also require...