On 1 August 2024, the European Artificial Intelligence Act (AI Act) enters into force. The Act aims to foster responsible artificial intelligence development and deployment in the EU. Proposed by the Commission in April 2021 and agreed by the European Parliament and the Council in December 2023, the AI Act addresses potential risks to citizens’ health, safety, and fundamental rights. It provides developers and deployers with clear requirements and obligations regarding specific uses of AI while reducing administrative and financial burdens for businesses. The AI Act introduces a uniform framework across...

Blog post by Stefan Gebauer, Thomas McGregor and Julian Schumacher | Central banks choose their words very carefully. And rightly so – policy makers’ wording can move markets and, eventually, the economy. This ECB Blog post shows how unexpected changes in communication influence growth and inflation. Central banks need to communicate clearly. This helps the public understand the rationale behind monetary policy decisions and shape market expectations. Their statements sometimes provide explicit forward guidance on the future direction of monetary...

Abstract Rising trade tensions, a spate of trade-inhibiting policy measures and a weakening of multilateral institutions have sparked a growing concern about the potential implications of global trade fragmentation. Yet, empirical evidence that geopolitical considerations are already materially affecting trade flows is scant. In this study, we quantify the impact of geopolitical tensions on trade of manufacturing goods over the period 2012-2022 in a structural gravity framework. To capture the influence of geopolitical tensions, we use a measure of...

Campaigning across Europe ahead of this year’s European elections was a reminder of what makes our Union what it is. Almost 500 million people with such disparate cultures, complex histories and differing perspectives all coming together at the same time to articulate their wish for an entire Union of 27 countries. In casting their vote they also help to build a shared European identity – all of this bound together by our rich and varied cultural tapestry. This is...

Blog post by Svetla Daskalova, Federico Maria Ferrara, Pedro Formoso da Silva, Pamina Karl and Thomas Vlassopoulos | Repo markets are vital for banks to source liquidity and securities. They also represent an essential link in the monetary policy transmission chain. While the Eurosystem is in the process of reducing its market footprint, repo markets are going through a phase of change. The ECB Blog looks at dynamics in this market. Monetary policy and repo markets are closely connected. The...

Long periods of slow economic growth can cause a jump in inequality. But a balanced set of policies can stave off that outcome. Blog post by Kristalina Georgieva, Managing Director of the IMF | The global economy is stuck in low gear, which could deal a major blow to the fight against poverty and inequality. Group of Twenty finance ministers and central-bank governors gathering this week in Rio de Janeiro face a sobering outlook. As the IMF’s latest World Economic Outlook update shows,...

The Organisation for Economic Co-operation and Development (OECD) announced a pilot phase to monitor the application of the Hiroshima Process International Code of Conduct for Organisations Developing Advanced AI Systems. This initiative will test a reporting framework intended to gather information about how organisations developing advanced artificial intelligence (AI) systems align with the Actions of the Code of Conduct and is a significant milestone under the G7's ongoing commitment to promoting safe, secure and trustworthy development, deployment and use of...

Thank you very much, dear Roberta, Good afternoon to everyone, I guess you have heard my speech, and you might have read the Political Guidelines. So you can imagine that this is a very emotional and special moment for me now. I just want to make three very short remarks before moving on to your questions. The first one is a more personal remark. I cannot begin without expressing how grateful I am for the trust and the confidence of the majority...