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The European financial system faces significant risks from excessive bank lending to the real estate sector. Historical trends show a strong link between real estate credit booms and banking crises. Current data indicate that real estate loans constitute a substantial share of banks' corporate loan portfolios, with varying risk levels across countries. Key drivers include expansionary ECB policies and regulatory incentives favouring mortgage lending. Strengthening oversight, improving data collection ...

InvestEU is the European Union’s flagship investment programme aimed at mobilising public and private financing to support sustainable infrastructure, innovation, SMEs, and social investment across the EU. As of June 2024, it has successfully mobilized around EUR 280 billion in investments using a EUR 26.2 billion guarantee, but faces concerns over guarantee depletion, excessive burdens and lack of transparency. The European Parliament plays a crucial oversight role, particularly in ensuring accountability ...

This paper outlines the European Union’s institutional framework for defining and executing an active euro exchange rate policy, against the backdrop of a potential policy shift by the United States. It outlines the emerging US debate on linking exchange rate policy with trade and security objectives and provides a background on past currency interventions by US and other central banks such as the Plaza Accord. The final part opens a discussion over the functioning and limits of the EU’s legal framework ...

Greece was among the first four EU Member States to submit its national recovery and resilience plan (NRRP) in April 2021. Since then, Greece has modified its plan in December 2023, adding a REPowerEU chapter and expanding its loan programme, and in July and December 2024, introducing smaller targeted revisions. The Greek plan now envisages investment and reforms worth €35.9 billion, to be implemented up to 2026; €18.2 billion will be financed from non-repayable financial support (grants), while ...

The European Commission's ReArm Europe Plan/Readiness 2030, presented in March 2025, proposes to leverage over €800 billion in defence spending through national fiscal flexibility, a new €150 billion loan instrument (SAFE) for joint procurement, potential redirection of cohesion funds, and expanded European Investment Bank support. It also aims to mobilise private capital through the savings and investments union. ReArm Europe has sparked debate. While many welcome its ambition and the EU's growing ...

With the geopolitical situation evolving rapidly in the first months of 2025, EU leaders had already convened three times in advance of their regular March meeting. Next to competitiveness – originally due to be the central focus point – the spring European Council meeting covered issues including Ukraine, the Middle East and European defence. On competitiveness, the EU-27 outlined precise directions to accelerate the EU's economic agenda, focusing on three priorities: cutting red tape, ensuring ...

EU Heads of State or Government will hold their first discussion on the post-2027 multiannual financial framework (MFF) at the European Council meeting on 20-21 March 2025. Since 1988, when an interinstitutional agreement introduced the first binding MFF, the European Council has played a central role in the process leading to its adoption. In 1992, the Lisbon Treaty established a new procedure whereby the MFF would come into being through the adoption of a regulation. The European Council was not ...

This paper presents the aggregated results of a survey conducted among Members of the Monetary Policy Expert Panel (MPEP) ahead of the March 2025 Monetary Dialogue with ECB President Christine Lagarde. The opinions expressed in this document are the sole responsibility of the survey respondents and do not necessarily represent the official position of the European Parliament, the Members of the ECON Committee or the EGOV Unit.

In this issue... ● US President Trump starts enacting his economic policy agenda and threatens the EU with tariffs. ● Headline inflation falls to 2.4% as underlying indicators ease. ● ECB reduces key policy rate by 25 bps. ● The euro continues to strengthen against the dollar amid growing uncertainty on US’s tariffs. ● The Fed keeps rate unchanged among economic uncertainty while challenges to independence arise. ● ECB reckons new US approach to cryptos and CBDCs strengthens the case for ...

This research study provides an overview of other revenue and its current and potential future relevance in the EU revenue system. After setting out the conceptual foundations and important definitions related to other revenue, the study maps the different categories of other revenue and presents their development over time. Finally, the study discusses several options to strengthen the role of other revenue, considering both existing and potential new other revenue sources. This study was provided ...