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...

Blog post by Óscar Arce and David Sondermann |  Over the first two decades of the currency union, labour productivity (output per worker) in the euro area has been weak, at least when compared to other advanced economies. While productivity grew annually on average by 0.6 percent from 1999 to 2019, the average pace was more than twice as fast in the United States. Productivity somewhat recovered after the pandemic, but more recently the picture changed for the worse...

Today, the Biden-Harris Administration issued a Notice of Funding Opportunity (NOFO) seeking proposals from eligible applicants for activities to establish and operate a CHIPS Manufacturing USA institute focused on digital twins for the semiconductor industry. Digital twins are virtual models that mimic the structure, context, and behavior of a physical counterpart. The CHIPS for America Program anticipates up to approximately $285 million for a first-of-its-kind institute focused on the development, validation, and use of digital twins for semiconductor manufacturing, advanced...