The three European Supervisory Authorities (EBA, EIOPA and ESMA - ESAs) issued today their first joint risk assessment report of 2021. The report highlights how the COVID-19 pandemic continues to weigh heavily on short-term recovery prospects. It also highlights a number of vulnerabilities in the financial markets and warns of possible further market corrections. Macroeconomic conditions improved in the second half of 2020, supported by ongoing fiscal and monetary policy efforts, but the resurgence of the COVID-19 pandemic since the last...

Blog post by Philip R. Lane, Member of the Executive Board of the ECB | In this blog post, I will provide an overview of the inflation outlook, based on the latest ECB staff macroeconomic projections for the euro area. To set the scene, I first review the current economic situation before turning to the analysis of inflation dynamics during the pandemic. Previewing the main messages, my assessment is that the volatility of inflation during 2020-2021 can be largely attributed to...

Charles Michel, President of the European Council | Good afternoon, President Biden. Thank you for accepting our invitation. We are delighted to welcome you today. It's not common practice for the European Council to host foreign guests at our regular meetings. The last time was 11 years ago.  It was your good friend, Barack Obama. In Washington, it might not be clear what the European Council does. As you know, the European Council is the gathering of the 27 EU Heads of...

The European Commission has disbursed €13 billion to six EU Member States in the sixth instalment of financial support under the SURE instrument. This is the third disbursement in 2021. As part of today's operations, Czechia has received €1 billion, Belgium €2.2 billion, Spain €4.06 billion, Ireland €2.47 billion, Italy €1.87 billion and Poland €1.4 billion. This is the first time that Ireland has received funding under the instrument. The other five EU countries have already benefitted from loans...

On 24 March, EU High Representative for Foreign Affairs and Security Policy/Vice President of the European Commission, Josep Borrell, and the Secretary of State of the United States of America, Antony J. Blinken met in Brussels to discuss ways to strengthen the EU-U.S. relationship and coordinate responses to priority foreign policy, security, and economic issues. They also committed to cooperate in the face of global challenges, including addressing the global climate crisis, bringing an end to the COVID-19 pandemic,...

Today, EU Commissioner for Justice, Didier Reynders, and U.S. Secretary of Commerce, Gina Raimondo, made the following statement regarding the negotiations on transatlantic data privacy flows: “The U.S. Government and the European Commission have decided to intensify negotiations on an enhanced EU-U.S. Privacy Shield framework to comply with the July 16, 2020 judgment of the Court of Justice of the European Union in the Schrems II case. These negotiations underscore our shared commitment to privacy, data protection and the rule of law and our...

Our digital footprint generates enormous value, but too much of it ends up in Big Tech silos Humanity has never been so comprehensively recorded. Smartwatches capture our pulse in real time for a distant artificial intelligence (AI) to ponder the risks of heart disease. Bluetooth and GPS keep track of whether some of us shop at gourmet stores and linger in the candy aisle. Our likes and browsing hours on social media are harvested to predict our credit risk. Our...

Leverage, the ability to borrow, is a double-edged sword. It can boost economic growth by allowing firms to invest in machinery to expand their scale of production, or by allowing people to purchase homes and cars or invest in education. During economic crises, it can play a particularly important role by providing a bridge to the economic recovery. 'The question becomes how to ensure that the fledgling recovery is not endangered, while at the same time avoiding an excessive buildup of...