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On 20 February 2026, the United States (US) Supreme Court ruled, in a landmark case, that the US International Emergency Economic Powers Act (IEEPA) of 1977 does not authorise the US president to impose tariffs. The ruling invalidates all tariffs that President Trump imposed under IEEPA on US trading partners, including the April 2025 'reciprocal' tariffs. The ruling is without prejudice to the US sector- and country-specific tariffs that have been levied under different legal bases. While the ruling ...

The ECB anticipates stable growth and inflation, while Europe is faced with geopolitical threats, lack of competitiveness and fiscal challenges. At such a time, central bankers need to consider the dynamics of risk scenarios that arise from potentially mis-aligned or mis-perceived trends and policy-relevant parameters and prepare for timely policy responses. This paper focusses on potentially unsustainable fiscal trends, potential growth misperceptions and their implications for inflation developments ...

This paper examines the persistent upward bias in euro area households’ inflation perceptions and expectations, even when realized inflation is near the ECB’s target. It discusses behavioural and informational drivers of this bias, its implications for consumption, wage setting, and monetary policy transmission, and the challenges it poses for ECB communication and credibility. The study concludes that improved monitoring and household-oriented communication are essential. This document was provided ...

Transatlantic relations since early 2025 have been marked by rising tension and uncertainty regarding the reliability of the United States as an ally. Policy clashes are expected across multiple domains, including NATO, Greenland, Ukraine, trade, technology, climate, and relations with China, underscoring a fundamental divergence in the US and European outlooks and objectives. While the US under the Trump Administration increasingly prioritizes Asia and presses Europe to assume greater responsibility ...

The February 2026 plenary session saw two key votes: on the Ukraine Support Loan, reaffirming the EU's continued financial support for Ukraine; and on the EU-Mercosur agreement safeguard clause, underlining the importance of protecting European interests. Members debated several Commission and Council statements, including on the European response to extreme weather events, particularly in Portugal, southern Italy, Malta and Greece; building a stronger European defence in an increasingly volatile ...

Parliament is set to vote during its February 2026 plenary session on a provisional text for a regulation implementing the bilateral safeguard clause for agricultural products incorporated into the trade pillar of the EU-Mercosur Partnership Agreement, as agreed in interinstitutional negotiations on 17 December 2025.

The European Commission has proposed a new regulation to strengthen the cross-border cooperation between national authorities in different Member States in charge of enforcing the 2019 Unfair Trading Practices (UTP) Directive. This targeted update of rules, which would complement the UTP Directive, aims to improve the position of farmers in the food supply chain when buyers are located in another Member State. During the February plenary session, Parliament is expected to vote on the provisional ...

In the context of a severe crisis in transatlantic relations linked to United States (US) President Donald Trump's designs on Greenland, the European Council President, António Costa, convened an informal dinner meeting with EU leaders on 22 January 2026. The EU's determined and united response to the US threats contributed to their de-escalation. As the President of the European Commission, Ursula von der Leyen, put it, the application of four key principles – 'firmness, outreach, preparedness and ...

• The European Commission intends to make a proposal to harmonise the definitions, classifications and penalties of firearms offences to place further pressure on illegal markets. • Addressing the availability of illicit firearms has been an aim within the EU for some time. Denying firearms and explosives to terrorists and criminals enhances the safety and security of EU citizens. In the EU 2020-2025 action plan on trafficking in firearms, the Commission noted the challenges that existed in minimising ...

This study examines the extent to which the EU’s legal framework and Member States’ practices on dual-use export controls align with their respective legal obligations, particularly as they relate to conflict-affected regions. There is a lack of high-quality data on EU trade in dual-use goods. While the EU’s annual report has improved in recent years, it continues to lack granularity regarding what is actually exported. Some Member States produce annual reports, including a few that offer a good ...