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This document provides an overview of key developments under the preventive and corrective arms of the Stability and Growth Pact on the basis of the latest Commission and Council decisions and recommendations in the framework of the Stability and Growth Pact and the latest European Commission economic forecasts. This document is regularly updated. This version is an update on a version published in March 2022.

The role of remittances in promoting sustainable development

Задълбочен анализ 23-06-2022

International remittance flows have proven their resilience through the COVID-19 pandemic-induced economic crisis in spite of initial expectations forecasting their decline and associated devastating consequences for development in recipient communities and countries. This calls for some reflection on the nature and behaviour of these flows, with a particular focus on aspects that might explain their countercyclical behaviour and distinctive patterns. Context-appropriate policies are required to ...

Linking national spending on the environment with the effects it has on the environmental performance of EU Member States allows for a better assessment of the effective quality of budgetary interventions. In this analysis, based on the detailed research paper in the Annex, we discuss under what circumstances some public environmental expenditure could be spent more efficiently at EU rather than at national level. We estimate that this transfer towards a more efficient level of governance would allow ...

The coronavirus crisis has demonstrated not only that the European Union faces a variety of risks, and that those disparate risks are inter-linked, but that the response to such challenges to the Union - even in areas in which the EU does not have explicit competence - is stronger with the Union and its Member States acting together. Russia's war on Ukraine, which was launched while this study was being drafted, shows us not just the added value of concerted action by the Union but also the ability ...

The Lebanese government's decision to impose new taxes in October 2019 sparked nation-wide protests by a population exhausted by poor public services, worried about increasing national debt and frustrated by widespread corruption. Since then, Lebanese politics have been marked by political deadlock that has prevented successive governments from implementing urgent reforms. The devastating explosion in the port of Beirut on 4 August 2020 only exacerbated the situation. By the time Prime Minister Najib ...

Russia's war on Ukraine: New EU sanctions

Накратко 05-04-2022

Outraged by Moscow's aggressive invasion of Ukraine, EU countries have adopted unprecedentedly tough sanctions in cooperation with close partners such as the US, Canada and the UK. Although Russia will partially adapt, these measures are expected to cause major disruption and isolate the country from the global economy. This paper updates a previous 'at a glance' note of 3 March 2022, by Martin Russell.

Macro-financial assistance to Moldova

Накратко 21-03-2022

Following a request by Moldova (19 November 2021), the European Commission adopted on 4 January 2022 a proposal for disbursing up to €150 million in new macro-financial assistance (MFA) to the country, of which up to €30 million in grants and up to €120 million in medium-term loans at favourable financing conditions. The European Parliament is due to vote on the proposal during its second March plenary session.

This study aims to assess how major economies were affected by the Covid-19 pandemic, in particular with respect to economic growth and public debt sustainability. It reviews the heterogeneity of policy measures taken, and aims to identify best practices. A special focus is placed on the euro area and its largest Member States. Principles and practices for ensuring sustained growth and sustainable public finances are discussed.

Some five years after the conclusion of the peace agreement between the Colombian government and the Revolutionary Armed Forces of Colombia (FARC), the political, economic, health and general situation in the country remains fragile, with a divided society, drugs-fuelled conflicts and weak governance. 2022 will be a key electoral year, while economic recovery from the coronavirus pandemic remains a challenge. The President of Colombia, Iván Duque Márquez, is set to address the European Parliament ...

Uncertainty is growing over the recovery of the European economy from the recession generated by the Covid-19 pandemic. The European Commission has painted an optimistic growth scenario in its most recent forecast, with the economy expected to expand by 5 per cent and 4.3 per cent in 2021 and 2022 respectively. However, an increasing number of analysts see the potential for growth dampened by new restrictions in the run-up to Christmas this year given a fourth/fifth wave of the pandemic currently ...