The Governing Council of the European Central Bank (ECB) decided yesterday to move to the next phase of the digital euro project: the preparation phase. This decision follows the completion of the investigation phase launched by the Eurosystem in October 2021 to explore possible design and distribution models for a digital euro. Based on the findings from this phase, detailed in a report published today, the ECB has designed a digital euro that would be widely accessible to citizens and...

The European Commission is carrying out unannounced antitrust inspections at the premises of companies active in the construction chemicals sector in several Member States. The Commission has concerns that the inspected companies may have violated EU antitrust rules that prohibit cartels and restrictive business practices (Article 101 of the Treaty on the Functioning of the European Union). The construction chemicals concerned by the inspection are chemical additives for cement and chemical admixtures for concrete and mortar. These are ingredients that are...

Once a year the ECB publishes a report presenting an overview of developments in the use of the euro by non-euro area residents. The international role of the euro is primarily supported by a deeper and more complete Economic and Monetary Union (EMU), including advancing the capital markets union, in the context of the pursuit of sound economic policies in the euro area. The Eurosystem supports these policies and emphasises the need for further efforts to complete EMU. Foreword by...

The Global recovery remains slow, with growing regional divergences and little margin for policy error The baseline forecast is for global growth to slow from 3.5 percent in 2022 to 3.0 percent in 2023 and 2.9 percent in 2024, well below the historical (2000–19) average of 3.8 percent. Advanced economies are expected to slow from 2.6 percent in 2022 to 1.5 percent in 2023 and 1.4 percent in 2024 as policy tightening starts to bite. Emerging market and developing economies...

The OECD/G20 Inclusive Framework on BEPS has concluded negotiations on a multilateral instrument that will protect the right of developing countries to ensure multinational enterprises pay a minimum level of tax on a broad range of cross-border intra-group payments, including for services. The Multilateral Convention to Facilitate the Implementation of the Pillar Two Subject to Tax Rule, which is now open for signature, is an integral part of the Two‐Pillar Solution to Address the Tax Challenges Arising from the Digitalisation of...

Expectations increasingly drive inflation dynamics. Improvements in monetary policy frameworks can better inform people’s inflation expectations and thereby help reduce inflation at lower output cost. By Silvia Albrizio, John Bluedorn Inflation around the world reached multi-decade highs last year. While headline inflation is coming down steadily, core measures―which exclude food and energy―are proving stickier in many economies and wage growth has picked up. Expectations about future inflation play a key role in driving inflation, as those views influence decisions about consumption and...

The Commission welcomes today's adoption of two final pillars of its ‘Fit for 55' legislative package for delivering the EU's 2030 climate targets. Ahead of the crucial COP28 UN Climate Conference, and next year's European elections, this complete package of legislation shows that Europe is delivering on its promises made to citizens and international partners to lead the way on climate action and shape the green transition for the benefit of citizens and industries. Commission President Ursula von der Leyen...

Today, EU member states’ representatives reached an agreement on the final component of a common European asylum and migration policy. At a meeting of the Council’s permanent representatives committee, member states sealed their negotiating mandate on a regulation on crisis situations, including sentimentalization of migration, and force majeure in the field of migration and asylum. This position will form the basis of negotiations between the Council presidency and the European Parliament. The new law establishes the framework that would allow...