So far, the anti-ESG backlash has had limited effect in Europe. Silvia Merler argues that the EU should continue to push companies on net zero alignment, but pragmatic changes can help ease burdens and maintain EU leadership
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Climate change is intensifying, generating more frequent and severe extreme weather events. Lukasz Krebel, Danae Kyriakopoulou and James Talbot examine the implications of severe weather events for the economy and monetary policy
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Financial institutions are rapidly embracing AI. Jon Danielsson argues that AI introduces novel stability risks that the financial authorities may be unprepared for, raising the spectre of faster, more vicious financial crises
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Climate policies could affect financial stability if they lead to large changes in asset returns. Matthias Kaldorf and Matthias Rottner study the financial stability and welfare effects of such ‘climate Minsky moments’
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Remaining competitive is fundamental for Europe’s future. Christine Lagarde and Ursula von der Leyen argue that Europe needs faster economic growth and higher productivity to protect the quality of life for Europeans
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The European Commission’s response to the Draghi Report is the Competitiveness Compass. Jeromin Zettelmeyer believes this would set up a conflict between industrial policy and the single market
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Heather Grabbe and Jeromin Zettelmeyer evaluate the capacity of the EU’s economic strategy to address structural problems and whether policy needs to change under Trump
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In many countries, demand for long-term care services outpaces supply, leading to a ‘care gap’. Svend Hougaard Jensen, David Pinkus and Nina Ruer argue that Europe must get ready for the coming long-term care surge
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Europe faces a large climate investment gap. Irene Monasterolo, Antonia Pacelli, Marco Pagano and Carmine Russo propose filling this gap through the joint issuance of European climate bonds that would be funded by selling GHG emission allowances via the ETS extended to all sectors
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Geopolitical risk and cyber-attacks are the most frequently cited risks among leaders of financial institutions operating in the UK. Carolyn Wilkins sets out how geopolitical threats present risks to financial stability
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