The three European Supervisory Authorities (EBA, EIOPA and ESMA - ESAs) issued today their Autumn 2022 joint risk report. The report highlights that the deteriorating economic outlook, high inflation and rising energy prices have increased vulnerabilities across the financial sectors. The ESAs advise national supervisors, financial institutions and market participants to prepare for challenges ahead. The post-pandemic economic recovery in Europe has dwindled as a result of the Russian invasion of Ukraine. Russia’s war on Ukraine and the disruptions in...

OECD labour markets bounced back strongly from the COVID-19 pandemic, but the global employment outlook is now highly uncertain according to a new OECD report. Russia’s war of aggression against Ukraine has caused lower global growth and higher inflation, with negative impacts on business investment and private consumption. The OECD Employment Outlook 2022 says that while labour markets remain tight in most OECD countries, lower global growth means employment growth is also likely to slow, while major hikes in energy and commodity prices...

Thank you minister, good afternoon everyone. It is a pleasure to be back in Prague. Thank you for hosting us in this beautiful city. As the minister already outlined, today's discussions in Ecofin focused on two main topics: financial support for Ukraine and our economic policy response to the war in Ukraine and its economic implications. As regards financial support for Ukraine, it is excellent news that ministers have endorsed the next part of our exceptional macro-financial assistance programme and agreed to provide...

Ceiling for remuneration of government deposits to remain at deposit facility rate (DFR) or euro short-term rate (€STR), whichever is lower, until 30 April 2023 Measure aims to preserve effectiveness of monetary policy transmission and safeguard orderly market functioning To preserve the effectiveness of monetary policy transmission and safeguard orderly market functioning, the Governing Council of the European Central Bank (ECB) today decided to temporarily remove the 0% interest rate ceiling for remunerating government deposits. Instead, the ceiling will...

Today, the Commission is proposing to fully suspend the EU's Visa Facilitation Agreement with Russia. A country like Russia, waging a war of aggression, should not qualify for visa facilitations as long as it continues conducting its destructive foreign policy and military aggression towards Ukraine, demonstrating a complete disregard to the international rules-based order. The suspension is in response to increased risks and threats to the Union's security interests and the national security of the Member States as result...

'High debt and rising interest rates put a premium on improved governance to anchor fiscal policy in EU member states.' Given the central role of fiscal policy in addressing both recent crises and future challenges, the call to reform fiscal governance in Europe resonates like never before. Fiscal policy provides essential support when households and firms are hit by large shocks, such as the pandemic, or when monetary policy is constrained. However, that requires healthy public finances. High debt and rising...

Today, the European Union opens its new office in San Francisco, California, a global centre for digital technology and innovation. The office will reinforce the EU’s cooperation with the United States on digital diplomacy and strengthen the EU’s capacity to reach out to key public and private stakeholders, including policy makers, the business community, and civil society in the digital technology sector. The EU High Representative for Foreign Affairs and Security Policy/Vice-President of the European Commission, Josep Borrell, said: “The...

The recent plunge in crypto assets has left investors numbed by losses and surely in doubt. But the future of money is undoubtedly digital. The question is, what will it look like? In our latest issue of Finance & Development, some of the world’s leading experts try to answer this complex and politically charged question. Of course, digital money has been developing for some time already. New technologies hope to democratize finance and broaden access to financial products and...