By Andrea Falconio and Julian Schumacher Economic uncertainty has been elevated recently due to geopolitical conflicts and trade tensions. This blog post investigates whether, and how much, high economic uncertainty affects monetary policy transmission in the euro area. Changes in interest rates make it cheaper or more expensive for businesses to get a loan or and for households to get a mortgage. But when the economic future is uncertain, businesses and households are less likely to invest in big, long-term plans...

This report contains the audited financial statements of the FSB for the 12-month period from 1 April 2024 to 31 March 2025. It also provides details on the FSB governance arrangements and its transparency and accountability mechanisms. A detailed explanation of the activities undertaken to implement the mandate and tasks of the FSB is provided in the FSB’s Annual Report, which is published separately. Overview The Financial Stability Board (FSB) coordinates, at the international level, the work of national financial authorities...

Today, the European Commission is putting forward two proposals paving the way for the implementation of the EU-US Joint Statement of 21 August 2025. These proposals are the first steps in said implementation and ensure tariff relief by the US for the vital EU automotive sector starting retroactively from 1st of August. These steps contribute to restoring stability and predictability in EU-US trade and investment relations, to the benefit of business, workers and citizens on both sides of the Atlantic. The first act concerns...

A new report from the European Commission highlights a positive shift in education funding across Europe, offering a boost to the EU's competitive edge. Titled ‘Investing in Education 2025,' the report details multiple economic and social benefits and shows that public investment in education is recovering after the setbacks of the Covid-19 pandemic - though it has not yet reached the levels seen before the crisis. This uptick supports the goals of the Union of Skills strategy and suggests promising benefits for the...

Opening panel remarks by Christine Lagarde, President of the ECB, at the annual Economic Policy Symposium “The policy implications of labour market transition” organised by the Federal Reserve Bank of Kansas City in Jackson Hole Jackson Hole, 23 August 2025 Alexis de Tocqueville – one of the keenest observers of early American democracy – once wrote: “History is a gallery of pictures in which there are few originals and many copies.” In monetary policy, too, we often look to past cycles for...

The European Commission has today launched a Call for Evidence and a public consultation to seek input on the scope and content of its revision of the Guidelines on State aid for rescuing and restructuring non-financial undertakings in difficulty (‘Rescue and Restructuring Guidelines'). This input will be used to update the Guidelines to ensure that they remain fit to meet their objectives. The Rescue and Restructuring Guidelines set out the conditions under which aid to non-financial undertakings in difficulty may be considered in line...

At “Labor Markets in Transition: Demographics, Productivity, and Macroeconomic Policy,” an economic symposium sponsored by the Federal Reserve Bank of Kansas City, Jackson Hole, Wyoming Over the course of this year, the U.S. economy has shown resilience in a context of sweeping changes in economic policy. In terms of the Fed's dual-mandate goals, the labor market remains near maximum employment, and inflation, though still somewhat elevated, has come down a great deal from its post-pandemic highs. At the same time,...