EU member states may now exceed deficit limits if the borrowing finances defence. Paolo Surico proposes exempting innovation-related expenditure, rather than procurement, to raise long-run growth while maintaining fiscal responsibility and strategic autonomy

AI offers substantial benefits to society. Stephen Cecchetti, Robin Lumsdaine, Tuomas Peltonen and Antonio Sánchez Serrano discuss significant concerns regarding risks to the financial system and propose a mix of competition and consumer protection policies address these vulnerabilities

Each financial crisis brings more financial supervision, more models and larger buffers – but still fragility persists. Jon Danielsson argues that resilience should be the organising principle of supervision, rooted in the basic idea that has long governed finance itself: diversification

Governments globally have been ramping up initiatives to modernize their digital payment and financial systems. S Yash Kalash writes that nations must guard, strengthen digital rails to secure financial sovereignty

The global minimum tax represents the most ambitious international effort in decades to curb profit shifting to tax havens. Katarzyna Bilicka, Michael Devereux and Irem Güçeri argue that profit shifting doesn’t just affect tax revenues, it alters investment incentives, creating fundamental trade-offs that cannot be ignored

AI is transforming finance faster than the authorities can adapt. Jon Danielsson argues that while AI enhances the financial system’s efficiency, it also poses new, poorly understood risks, and ineffective supervision will mean a higher risk of financial crisis