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This briefing paper was prepared ahead of the Monetary Dialogue between the Committee on Economic and Monetary Affairs (ECON) and the European Central Bank (ECB) President on Monday, 25 September. It provides a summary of key monetary policy developments and decisions taken by the ECB’s Governing Council.

This briefing provides a summary of the recent economic developments in the EU Member States and gives an overview of relevant economic projections forecasted by major international and EU institutions.

Achieving a balanced monetary-fiscal policy mix in the euro area is crucial to ensure that monetary policy is able to fulfil its primary price stability objective. This paper outlines, from an economic and legal perspective, the interaction between monetary and fiscal policy in light of the current monetary and fiscal stance and, in particular, the “quasi-fiscal” effects of some unconventional monetary policy measures. Since sustainable public finances are a prerequisite for a price-stability-oriented ...

The geopolitical and economic shocks, due to the Covid-19 pandemic and the war in Ukraine, represent a structural shift for the European Union (EU) economy. The euro area needs to deal with an ongoing inflation process and the EU needs to radically transform its production model to avoid a lasting decline. An expansionary centralised fiscal capacity, grounded on the production of public goods, and a related common industrial policy are required to allow for this structural change. In the meantime ...

This paper analyses the operational frameworks adopted by the ECB and the consequences of a shift from the floor to the corridor system. The concept of excess liquidity in the euro area is examined, alongside discussions on market liquidity and funding liquidity. The paper emphasises the need to evaluate the implications for monetary policy effectiveness and financial stability of the different frameworks, shedding light on the role of liquidity in maintaining well-functioning financial markets. ...

This study, commissioned by the European Parliament’s Policy Department for Citizens’ Rights and Constitutional Affairs at the request of the AFCO Committee, examines the fiscal responses of the EU to the Covid-19 pandemic and the war in Ukraine. It claims that the law & policy tools developed to address these crises have led to the establishment, and consolidation, of an EU fiscal capacity – contributing to overcoming the original imbalance of the EU’s Economic & Monetary Union. Nevertheless, the ...

This infographic provides an insight into the economic performance of the United States (US) compared with the European Union (EU), and looks at the trade dynamics between them. The US unemployment rate rose substantially in 2009 following the financial crisis. This was followed by a steady fall in unemployment from 2010 onwards, with the exception of the COVID-19 years (2020 and 2021) when a new steep increase was recorded. Both foreign direct investment (FDI) and remittances remained relatively ...

This document provides a snapshot of the state-of-play on EU national parliaments involvement at the early stage (spring 2023) of the current EU economic governance reform debate. The summary is based on replies from 20 parliament chambers from 16 EU member states

A digital euro can be understood as central bank money offered in digital form for citizens and businesses to be used for their retail payments. It would be a central bank digital currency (CBDC) –an electronic equivalent to cash, complementing banknotes and coins – and the central motivation to develop a CBDC can be explained by the increasing digitalisation of financial services. Banknotes and coins, currently the only public money, are considered the ultimate anchor of the financial system. However ...

Lithuania's National Recovery and Resilience Plan (NRRP) sets out the package of reforms and investment measures designed by the country in the context of the EU response to the crisis triggered by the coronavirus pandemic. In absolute figures, Lithuania decided to use its full grant allocation of €2 224 million under the Recovery and Resilience Facility (RRF), while declining to avail of the loan component. These resources represent 0.3 % of the entire RRF, equal to 4.6 % of the country's gross ...