Europe is recalibrating its industrial policy in response to external challenges. Maive Rute, Frank Vandermeeren and Anca Dumitrescu investigate the goals of this recalibrated approach and the key components for success

The Iran energy shock is a test of European discipline on state aid. Roel Dom and Simone Tagliapietra argue that the latest EU temporary state-aid framework is needed to shield industries and consumers from short-term costs, but should not become more permanent

Stablecoins are not an efficient way to strengthen the international role of the euro, says Christine Lagarde. The best solution to do so remains: deeper capital market integration through the savings and investment union and a stronger safe asset base

Global efforts to tackle the climate and nature crises have not progressed as hoped, says Christine Lagarde. This sharpens the case for deeper analysis from the research and central banking communities to better understand the risks to price and financial stability

The dramatic developments unfolding globally, spanning wars, geopolitical shifts, and trade disruptions, have caught Europe off balance. Marco Buti, Giancarlo Corsetti and Anna Peychev discuss the 2026 Florence Report and urge the EU to replace its broken ‘reduced responsibility model’ with a New European Social Contract integrating defence, finance, and the supply of public goods

Governments across Europe are increasingly acting to help industry remain competitive without compromising EU climate policy. Stan Olijslagers, Corjan Brink, Xinyu Li, Rutger Teulings and Herman Vollebergh argue that both goals cannot be met using a single instrument