Meeting the continent’s emission reduction targets could enhance energy security metrics by 8 percent by 2030—and that would be just the start Blog post by Geoffroy Dolphin, Romain Duval, Galen Sher, Hugo Rojas-Romagosa | Russia’s invasion of Ukraine triggered Europe’s worst energy crisis since the 1970s and put energy security back at the top of the policy agenda. Policymakers reacted swiftly by securing alternative natural gas supplies, improving energy efficiency, and expanding renewables. Reducing greenhouse gas emissions would, they said, not only mitigate climate...

When Russia invaded Ukraine, and turned its energy resources into an economic weapon against Europe, our reaction was rapid and robust. We adopted the REPowerEU Plan to end Europe's dependency on Russian fossil fuels. Two years later, the results of our collective efforts are clear to all. We have made a massive cut in Russian energy imports, squeezing the Kremlin's war economy and standing in solidarity with our Ukrainian friends. We have worked with reliable international partners to replace Russian...

Blog post by Omiros Kouvavas, Athanasios Tsiortas | Recent results from the ECB’s Consumer Expectations Survey (CES) show a substantial increase in the share of consumers who applied for credit. This may seem surprising as currently borrowers have to pay higher interest rates and banks are providing less credit than in previous years. What are the main drivers behind this dynamic? CES microdata suggests there have been significant shifts in the composition of consumer groups applying for credit. Higher-income consumers now...

Today, as the AI Seoul Summit begins, U.S. Secretary of Commerce Gina Raimondo released a strategic vision for the U.S. Artificial Intelligence Safety Institute (AISI), describing the Department’s approach to AI safety under President Biden’s leadership. At President Biden’s direction, the National Institute of Standards and Technology (NIST) within the Department of Commerce launched the AISI, building on NIST’s long-standing work on AI. In addition to releasing a strategic vision, Raimondo also shared the Department’s plans to work with...

A soft landing for Europe’s economies—bringing inflation back to target with a moderate economic cost in terms of growth—is within reach, but crosswinds could make it difficult to achieve price stability while securing a lasting recovery. Over the next few quarters, cooling yet still-strong labor markets are expected to support real income growth and consumption. The recovery of consumption will help offset the effects of the needed withdrawal of fiscal support and galvanize investment as monetary policy eases. Against the...

The EU economy staged a comeback at the start of the year, following a prolonged period of stagnation. Though the growth rate of 0.3% estimated for the first quarter of 2024 is still below estimated potential, it exceeded expectations. Activity in the euro area expanded at the same pace, marking the end of the mild recession experienced in the second half of last year. Meanwhile, inflation across the EU cooled further in the first quarter. This Spring Forecast projects GDP...