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The Commission’s reform orientations propose that debt sustainability analysis (DSA) should serve as an anchor in EU fiscal rules. After discussing the main assumptions of DSAs in projecting public debt ratios, we analyse four critical aspects in designing such a reform: making judgement calls with regard to DSA assumptions; ensuring transparency and democratic legitimacy; promoting public investment in the context of climate goals; and tackling cross-border effects of fiscal policy, in particular ...

People from racial and ethnic minority backgrounds face discrimination and its consequences on a daily basis, but the exact scale of the problem is hard to gauge owing to a lack of data and general under-reporting of racist incidents. The coronavirus pandemic saw a major increase in reports of racist and xenophobic incidents, and the crisis it triggered had a disproportionately large negative effect on racial and ethnic minority groups, in the form of higher death and infection rates. Although, since ...

Cleaner Air for Europe

Briefing 20-03-2023

The IA clearly identifies the current AAQDs' shortcomings, provides references to the updated WHO guidelines and lists the fitness check findings, stakeholders' opinions, and supporting data. It sets a general objective to further improve air quality in the EU and diminish the impact of air pollution on human health and the environment. It does not make it clear however whether the translation of the general objective into specific objectives, as formulated, fully addresses some relevant drivers. ...

24 February 2023 marked one year since the start of the Russian invasion of Ukraine. Before the war, starting in 2021, the euro area was experiencing inflationary pressure attributed to supply-side factors, in particular to pandemic-related supply chain disruptions. The war in Ukraine amplified inflationary pressures through energy and food prices, later feeding into goods and services inflation. Later in 2022, the relative contribution of demand-side factors became more prominent. With the recent ...

The current Machinery Directive (Directive 2006/42/EC) was designed to allow the free movement of machinery within the internal market, while ensuring a high level of user health and safety. To reduce the occurrence of accidents, it promotes the inherently safe design and construction of machinery, and proper installation and maintenance. On 21 April 2021, the Commission put forward a proposal for a regulation on machinery products, as part of a wider 'artificial intelligence package'. The need for ...

The term "quantitative tightening" refers to the process of decreasing the central bank's balance sheet through a reduction of asset holdings acquired during "quantitative easing". Over the years, the Eurosystem acquired a substantial portfolio of assets as part of its asset purchase programmes. While the European Central Bank (ECB)'s Governing Council decided already in 2022 to stop net purchases, reinvestments of principal repayments continued until March 2023, thus maintaining the exisiting stock ...

In July 2021, the European Commission put forward the 'fit for 55' package of legislative proposals, aimed at ensuring the success of the European Green Deal. The FuelEU Maritime regulation is one of these proposals and, together with four other proposals, it seeks to steer the EU maritime sector towards decarbonisation. To support the uptake of sustainable maritime fuels, the Commission proposes to limit the carbon intensity of the energy used on board ships. Accordingly, the proposal sets a fuel ...

This note provides an overview of the implementation of the 2022 recommendation on the economic policies of the euro area proposed by the Commission and agreed by the Council. It makes use of public information and proxies such as on how the Eurogroup has integrated euro area recommendations’ concerns in their “thematic discussions” and work programmes. This note will be updated in light of relevant developments.

This note looks at the 2023 recommendation on the economic policies of the euro area proposed by the Commission and agreed by the Council. The note provides a review of the euro area recommendations from an institutional perspective and includes broad comparisons to earlier recommendations, in order to illustrate how policy concerns have evolved over time. This note is an update on a previous version and will be updated in light of relevant developments.

Out of the fog?

Detaljna analiza 16-03-2023

The ECB has orchestrated a U-turn in monetary policy since July 2022. However, inflation remains a considerable distance away from its own medium-term objective. The ECB relies too heavily on data dependence and uncertainty in communicating monetary policy to markets and the public. It also fails to acknowledge the inherent tensions that exist between monetary and financial stability policies. The current hawkish stance is appropriate but leaves the ECB open to more credibility losses should tail ...