Here in Finland, the idea that economics cannot be separated from geopolitics is hardly new. During the early 1990s, as the Soviet Union collapsed, Finland lost more than 10% of its GDP when trade with its eastern neighbour suddenly evaporated.[1]
Few countries know better the costs of ignoring geopolitical realities.
Today, the rest of Europe is facing a similar reckoning. We find ourselves in a new world – one where policymakers can no longer confine themselves to traditional economic and financial variables. Now, we must factor “geoeconomics” into our analyses.
The term was coined in 1990 by Edward Luttwak, who described geoeconomics as “the admixture of the logic of conflict with the methods of commerce”. It is not protectionism in the old sense of sheltering vulnerable industries. Instead, it is trade deployed as a tool of power, a strategy of influence and dominance.
This approach has been around for some time, most visibly during the US-China trade disputes that unfolded during the first Trump Administration. The unjustified war in Ukraine and the sanctions that followed have also reshaped the European landscape. But 2025 marks the first year in which Europe itself has been on the receiving end.
We currently face the highest tariffs since the days of Smoot-Hawley in the 1930s, imposed by our largest trading partner. Global trade is being reshaped as other countries respond to tariffs directed at them. And in the span of just a few months, we have seen a surge in trade uncertainty and sharp swings in exchange rates.
So now is a good time to take stock of what we have learned so far, and what this implies for monetary policy.
Trade wars: expectations versus reality
A year ago, most would have assumed that US tariffs rising from 1.5% to 13% would trigger a major adverse shock to the euro area economy. Indeed, most trade models judged the imposition of tariffs to be, on net, negative for euro area growth and likely positive for inflation, at least in the short run.
This was broadly our internal assessment in December of last year, albeit surrounded by considerable uncertainty. Three channels were usually seen as decisive in producing such an outcome.
First, retaliation. Reciprocal tariffs were expected to raise import costs and reverberate through supply chains. In most models, this retaliation channel was by far the largest driver of higher short-term inflation.[2]
Second, the exchange rate. Tariffs were expected to trigger a depreciation of the euro against the dollar – driven by expectations of higher US rates and a smaller US trade deficit – thereby amplifying imported inflation.[3]
Third, uncertainty. Elevated trade policy uncertainty was expected to weigh heavily on business investment and growth, often more than the direct effect of tariffs on exports themselves. This was expected to be the largest negative force on growth.
Yet some of these assumptions have not been borne out.
This is because the tariffs were not an isolated economic event, but a symptom of a broader geopolitical shift – one that triggered political economy dynamics beyond the reach of standard models.
Start with retaliation.
In Europe and globally, it has so far been limited. In response to the US tariffs on steel and aluminium, the EU announced counter-tariffs on around €26 billion worth of American goods, but suspended them once a deal was struck in July.
Pressure from major industrial groups to avoid a prolonged cycle of tit-for-tat measures, as well as concerns about jeopardising US support for the war in Ukraine, ultimately outweighed pure economic calculus.
As a result, we have not yet seen significant supply chain disruption. Global supply chain pressures remain contained, and in the euro area, bottleneck indicators are close to historical averages.
If anything, rather than blocked supply chains, the euro area is facing rising imports. The euro area’s trade deficit with China has risen by around 10% this year, although this was driven more by weaker Chinese demand than by diverted trade flows.
The exchange rate has also not behaved as expected.
Rather than depreciating, the euro has appreciated substantially. Since the start of this year, it has risen by 13% against the US dollar, while the nominal effective exchange rate has increased by 6.5% and the real effective exchange rate[4] by 5%.
This reflects the fact that the imposition of US tariffs coincided with a broader re-evaluation of the country’s position in the global financial system.
Investors began to question whether the US dollar would continue to warrant its status as the ultimate safe-haven currency – another political-economy factor that narrow, tariff-focused models excluded by assumption.
The international role of the euro has helped insulate us from the resulting exchange rate volatility, with 52% of our imports invoiced in our own currency. But many key imports, especially commodities, are still priced in dollars.
The euro’s appreciation has therefore contained imported inflation from supply chains, while at the same time placing an additional drag on growth.
The effects of uncertainty have been more in line with expectations. The expected cumulative impact of tariffs and uncertainty on growth is around 0.7 percentage points between 2025 and 2027, compared with our projections last December.
Still, these effects have not been as strong as we anticipated. For example, only about a quarter of the downward revision for next year, compared with December last year, is due to uncertainty.
This is partly because trade policy uncertainty fell faster than we expected once the deal with the United States was concluded. It is also because the euro area has taken internal measures to boost growth that have helped counter external weakness.
In particular, governments in Europe have committed to the largest increase in rearmament in decades, with some reversing years of underinvestment. Government investment is now expected to add 0.25 percentage points to growth[5] between 2025 and 2027, offsetting around one-third of the trade shock.[6]
The EU has also pushed ahead with new trade agreements, which will support growth. The Mercosur and Mexico deals now being adopted cover more than 3% of extra-euro area goods exports, while agreements currently under negotiation account for a further 6%.[7]
This is another example of a response that models could not capture beforehand: trade pressures have led European governments to re-evaluate their broader trade and security relationships, prompting an endogenous investment response.
All in all, with no retaliation and an appreciating exchange rate, tariffs have had little inflationary impact so far, with their adverse effects mainly limited to growth. Those effects, however, have been relatively moderate thanks to the domestic response.
Evaluating the balance of risks
In an environment of high uncertainty, understanding the nature of shocks is a precondition for getting the baseline projection right.
But capturing the balance of risks is just as crucial, so that we are prepared for a situation in which the baseline may prove obsolete and can act pre-emptively, if necessary.
This was a key conclusion of our recent strategy review: to emphasise more risks and uncertainty in our decisions, not just central projections.
Initially, we viewed the risks to growth from US tariffs as tilted to the downside.
This assessment was informed by extensive scenario analysis, including escalation scenarios and possible offsetting forces – notably the growth impact of a sustained increase in defence and infrastructure spending.
Overall, these scenarios have consistently shown that the most salient risks – those that could push growth furthest from its current path – lie on the downside rather than the upside.
For example, ECB staff find that severe escalation in trade tensions could lower growth cumulatively by about 1 percentage point over the projection horizon.[8] The potential boost from higher defence spending would not be sufficient to offset this, even if all countries were to deliver fully on their NATO commitments.
This tilt in the risk balance remains in place today. But at our last meeting, we judged risks to growth to be more balanced, because the likelihood of major tariff-related downside risks materialising had fallen owing to the new trade deal.
Meanwhile, we judged inflation risks to be two-sided, with plausible scenarios that could push inflation off track in either direction. But as new information has come in, the range of risks on both sides has also narrowed.
In particular, the absence of significant EU retaliation has reduced the risk that higher import tariffs might drive inflation above the baseline. Our scenario analysis also points to inflation risks that remain well contained.
If trade tensions were to reignite, staff project only moderately lower inflation in 2027, reflecting weaker growth. Higher spending on defence equipment, by contrast, would only modestly raise inflation, given its relatively small weight in the consumption basket.
Staff have also examined scenarios that would affect prices more directly: on the downside, Chinese export prices being lowered further as a strategic response to tariffs; and on the upside, more pronounced bottlenecks in global supply chains.
In both cases, however, the impact would be limited under reasonable assumptions, with inflation in 2027 differing by only 0.1-0.2 percentage points.[9]
Policy implications
So what does this imply for our monetary policy?
I have said that we are in a good place. This was largely a reference to the fading of the large inflation shock we faced in recent years, which is now essentially over in the euro area.
But there are also three additional reasons why it applies to the current situation.
First, because trade shocks are not creating new inflationary pressures, we are not confronted with the classic policy trade-off where the central bank faces stalling growth and rising inflation.
This has already allowed us to cut policy rates by 100 basis points since December – cushioning the impact while keeping medium-term inflation on track.
Second, insofar as we can model the future, the risks to inflation appear quite contained in both directions.
Third, with policy rates now at 2%, we are well placed to respond if the risks to inflation shift, or if new shocks emerge that threaten our target.
At the same time, we are navigating a far more difficult environment than before – beset by war, tariffs and uncertainty – which we must also factor into our policy.
If we consider the “known knowns”, the risks appear well bounded.
But there are also “known unknowns” – above all, how euro area companies will adapt to this new setting. Firms are still running down inventories and absorbing the shock in margins, so the full effects of US tariffs have yet to become clear.[10]
Finally, there are the “unknown unknowns”: in a world of geoeconomics, new trade and geopolitical shocks will remain a constant feature of our environment.
How these forces play out will have unavoidable effects on monetary policy – not only through their impact on growth, but also on potential growth.
If firms interpret the new environment as a lasting confidence shock, we could see investment shift out of the euro area.[11] Preliminary staff analysis suggests that, all else being equal, tariffs are likely to weigh negatively on potential growth.
Lower potential growth would, in turn, put downward pressure on real rates and reduce the policy space available.
But other paths are possible if governments act decisively and give firms new reasons to be confident.
One factor often overlooked in the tariff debate is that our internal market is far more important for trade than the global market. Staff analysis shows that an increase of just 2% in intra-euro area trade would be enough to offset the loss of exports to the United States caused by higher tariffs.[12]
This is a compelling reason to implement the reforms identified in recent reports from Mario Draghi and Enrico Letta, in particular simplifying burdensome regulation, completing the Single Market and building a genuine European capital market.
The same reforms would also help European companies adopt artificial intelligence more rapidly.[13] This would result in a positive shock for potential growth, helping to balance the negative forces coming from abroad.
In short, nothing about our future is fate – and there is no room for complacency by any party.
For our part, we cannot pre-commit to any future rate path, whether one of action or inaction. We must remain agile, and ready to respond to the data as they come in.
Conclusion
Let me conclude. This is an unusual time to be a monetary policymaker. We can take comfort in having overcome a large inflation shock after the pandemic, and in how the economy has coped so far with an upheaval in trade relations. And yet, we must remain alert to the possibility that not all the consequences are visible today – and that new shocks may still lie ahead.
As we look to the future, we do so mindful of Finland’s long tradition of sisu – courage and inner strength in the face of uncertainty. Sisu is not a show of fleeting bravery, but rather a fierce determination and perseverance to continue fighting even when times get tough.
We are in a good place today, but that place is not fixed. Our task is to sustain it with agility, humility and a firm grounding in the data.

 
Compliments of the European Central Bank
 
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Analysis finds that the trade shock alone can explain between 4.7 and 5.9 percentage points of the loss in GDP. See Gulan, A. (2021), “Can large trade shocks cause crises? The case of the Finnish-Soviet trade collapse”, Blogs – Bank of Finland Bulletin, Bank of Finland, 5 May.
Gnocato, N. et al (2025), “Tariffs across the supply chain”, VoxEU Column, CEPR, 30 May.
Jouvanceau, V., Darracq Pariès, M., Dieppe, A. and Kockerols, T. (2025), “Trade wars and global spillovers. A quantitative assessment with ECB-global”, Working Paper Series, No 3117, ECB, Frankfurt am Main, September.
Deflated by consumer price inflation.
This estimate also includes wages, government consumption and transfers.
Government investment as a ratio to GDP is expected to be cumulatively almost 0.6 percentage points higher over the period from 2025 to 2027 than projected in December last year.
With South Korea, India, Australia, Malaysia, Thailand, Indonesia and the Philippines.
European Central Bank (2025), “Eurosystem staff macroeconomic projections for the euro area, June 2025”, Frankfurt am Main, June.
European Central Bank (2025), “Eurosystem staff macroeconomic projections for the euro area, September 2025”, Frankfurt am Main, September.
Organisation for Economic Cooperation and Development (2025), OECD Economic Outlook Interim Report September 2025: Finding the Right Balance in Uncertain Times, OECD Publishing, Paris, September.
European Central Bank (2025), “The outlook for euro area business investment – findings from an ECB survey of large firms”, Economic Bulletin, Issue 4.
The United States accounts for 10% of total euro area exports, and the new tariffs are expected to reduce euro area exports to the United States by approximately 9%, translating to a 0.9% decline in overall euro area exports – roughly €66 billion. Making up for this shortfall in direct trade would require a 2% increase in intra-euro area trade.
European Investment Bank (2025), Investment Report 2024/2025: Innovation, integration and simplification in Europe, March.

The post ECB | Trade wars and central banks: lessons from 2025 – Speech by President Christine Lagarde first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

Thank you for inviting me to speak here today. The theme for Sibos this year, “the next frontiers of global finance” is a fitting one. We are indeed witnessing a new frontier of innovation in payments and the broader financial system. New technologies like distributed ledgers, tokenized assets, smart contracts, and artificial intelligence (AI) have the potential to make payments smarter, faster, and more efficient. I know many of you in the audience today represent firms that are using the latest cutting-edge advances to bring new global solutions to the market.
The conference theme also accurately captures that we are at the next frontier. I often note that the modern history of payments is a story of technological innovation. The history spans from the last century, when payments and securities transfers were converted from paper to electronic solutions, to the present day when we increasingly have payment systems that process transactions in real time, 24/7.
Lastly, the conference theme recognizes the global nature of payments and financial infrastructures that underpin international commerce. Of particular focus in this domain are cross-border payments, which involve transactions across a layered and complex set of networks and experience frictions that contribute to higher costs, slower speeds, limited transparency, and barriers to access. Multiple opportunities for improvement exist in international payments, including improvements to smaller-value remittances, business-to-business payments, and collateral management in capital markets.
As we enter the next frontier, let us remember that this is not a new story and that we should not fear new technologies, nor new types of providers. Instead, we should ask how new technologies could benefit all types of actors, including the most sophisticated financial firms as well as consumers, while not losing sight of the need for guardrails that promote safety for consumers and the broader financial system. In addition, we should ask how new technologies could be used to upgrade the infrastructures that serve as critical components to the global financial system, in a way that maintains and extends safety and resilience. These are the topics I will consider today.
Choice and competition
I approach these issues fundamentally as an economist and as a firm believer in the free market. In particular, I would highlight the importance of choice in how markets function and how competition develops. In general, choices encourage competition, leading to better quality products and services. Businesses innovate to differentiate products, including by incorporating new technical capabilities. This improves market responsiveness to consumer demand. Businesses also incorporate new technologies to compete on cost and efficiency. I see stablecoins, for example, as simply another choice available to consumers and businesses, where they have signaled a need in the market to further improve payments. I believe that we must take this articulated need seriously and respect the ability of the private sector to develop solutions.
This dynamic is nothing new. Market participants have long had choices in the types of payment instruments they use. Public and private forms of money coexisting, in multiple forms, is in fact a common feature in all developed economies. In the United States, consumers have had central bank money in the form of cash, commercial bank money in the form of deposits in a bank account, and nonbank money (or “e-money”) in the form of a funds balance on a nonbank payment app. Stablecoins are simply a new form of private money and will exist alongside these other payment instruments, provided consumers accept them as safe, low-risk assets with regulatory protections.
Consumers and businesses have for decades also had a choice of providers of payment services and financial products including banks, card networks, nonbank payment service providers, and, more recently, other fintechs. Having a choice of providers is important because needs and preferences vary among consumers and businesses. I may choose one provider if I want to park my emergency fund in a high-yield savings account, and I may choose different providers if I want to process a cross-border payment, pay someone with a QR code, or buy a crypto-asset. A choice of providers also encourages competition on cost, speed, efficiency, and user experience.
Additionally, firms have options for payments and financial infrastructure, which is important because firms might choose to route money or securities on different rails depending on business needs. Some may value speed; some may prefer the ability to batch payments and settle on net to capture liquidity savings. Some will prefer the features of a centralized financial market infrastructure and its built-in regulatory guardrails; some may prefer to transact on public blockchains, with different models for achieving security and integrity. Having multiple options is also good for public policy objectives like promoting resilience across the broader payment system.
Assessing benefits of the next frontier of innovations
Given this backdrop of new technologies and new entrants within a competitive market, let’s explore how this could lead to positive economic outcomes.
First, will the next frontier of innovations translate to lower costs? An influx of new market entrants certainly has the potential to drive down costs as they compete for customers, particularly if blockchain-based transactions prove to be cheaper. If stablecoins present a lower cost alternative to consumers and businesses, I am all for it. We are already seeing this dynamic develop outside of the United States, where U.S. dollar stablecoins are an attractive option in countries in which access to dollar banking services is expensive or limited. We also know that cross-border payments, in particular remittances, are relatively expensive. This is attributable in part to the complexity of transactions involving multiple infrastructures, currencies, and intermediaries. One way in which innovative technologies could translate to lower costs is through efficiency gains.
This brings me to my second question: how might new technologies improve the efficiency of the payment system? Distributed ledger technology, or DLT, is rapidly becoming an efficient infrastructure for 24/7 transactions, recordkeeping, and data management by enabling multiple platforms, parties, assets, and functions to be combined in new ways. As an example, DLT-based platforms can support 24/7 real-time payments and securities transfers by using programmable functionalities like smart contracts to enhance operational efficiency and automate more complex financial transactions. With the ability to specify the precise time at which a transaction settles and under what conditions, DLT-based platforms have the potential to increase the flexibility and efficiency of settlement for money and assets.
Many cross-border payments today rely on the correspondent banking model—a network of bilateral banking relationships that enables financial institutions to access foreign financial systems and to conduct business across jurisdictions without establishing physical and legal presence in every market they serve. While correspondent banking has been the backbone of global payments for decades, this model faces several challenges, including high transaction costs, slower processing times, and a global decline in correspondent banking relationships. While these frictions are attributed in part to the process of sending payments through a complex chain of correspondent banks, I should note that not all frictions are barriers to overcome. Certain frictions are purposely built into the global payment system for compliance and risk-management reasons, such as preventing money laundering and countering the financing of terrorism.
DLT-based platforms have the potential to improve upon the existing correspondent banking model, and private-sector firms are pursuing multiple approaches to do so. One way is through the “stablecoin sandwich” model, in which fiat currency in one country is converted first into a stablecoin, then that stablecoin is transferred to another individual, and then converted back into the local fiat currency at its destination. Another way is through the use of tokenized deposits, where banks represent deposit liabilities on a blockchain for wholesale and cross-border transactions. Either model has the potential to improve transparency, cost, and timeliness, while balancing the need for safety and integrity of the transfer. DLT-based platforms generally (and stablecoins, specifically) may also present opportunities for efficiency gains in remittance payments, where today, money transfer operators rely on large global networks of agents and pre-position capital in various currencies to pay out customers in different jurisdictions. These examples also demonstrate that innovation is not an issue of “TradFi” versus “DeFi,” but rather poses an opportunity to harness the complementary strengths each has to offer, especially at a time where we are seeing increased convergence between the two.
Importantly, efficiency will depend on the extent to which DLT networks can interoperate with one another and with traditional payment rails. This is particularly true because payments exhibit significant network effects. Fortunately, numerous private-sector advances in interoperability are emerging given this market need, and as an operator of core payment and settlement infrastructure, we at the Federal Reserve continue to assess how we can improve our existing rails that serve private-sector firms.
Let’s turn from DLT to AI. AI can further improve the efficiency of payments in a number of ways, including through automating manual tasks, detecting fraud or compliance risks, and now with agentic AI, executing tasks on behalf of a person or company quickly and cheaply through the use of AI agents. Let’s again take the example of cross-border payments, which involve multiple jurisdictions, each with its own compliance requirements. Firms are increasingly exploring AI and machine learning (as well as smart contracts) to automate compliance activities.
Third, can new technologies and products maintain and build trust in the digital ecosystem? I believe they can. One common criticism of stablecoins is that they will somehow undermine the trust in money. Under regulatory frameworks like the GENIUS Act in the United States, payment stablecoins will be backed at least 1 to 1 with safe, liquid assets and users will be able to redeem their stablecoins at par. I have long advocated that a right-sized regulatory framework can address concerns related to safety and financial stability, while allowing stablecoins to scale on their own merits.
As with any technology, ecosystem operators will need to assess and manage risks, including cybersecurity. As payments shift to new rails and include stablecoins, tokenized assets, and smart contracts, new opportunities for cyberattacks will emerge. Achieving security and resilience means ensuring these digital platforms are hardened against misuse, with redundancy and safeguards in place that match the scale of domestic and global payments. Building resilience requires both the private and public sectors to work together on standards, cybersecurity, and risk management, so that innovation goes hand-in-hand with safety.
Roles of the private and public sectors
This brings me to the roles that the private and public sectors can play at the next frontier of payments innovation. I often argue that the private sector can most reliably and efficiently allocate resources and take risks to explore the value of new technologies. The private sector is also best positioned to serve consumers and provide products and services that meet their needs. You don’t want the government to decide what technologies are in or out, or decide what consumers want. Further, the private sector brings a depth and level of technical expertise required to translate new technologies into practical improvements for payments.
The role of the public sector is to support the private sector in specific circumstances where that is useful. At the Federal Reserve, that means serving as a convener to solve coordination problems, providing regulatory clarity when within our specific remit, and operating core payment and settlement infrastructure that the private sector uses. Complementary private and public roles can contribute to a safe and efficient payment system.
Looking ahead, I believe it is important to understand how the Federal Reserve can continue to support private-sector innovation. One way is to conduct research and experimentation on emerging technologies. At the Federal Reserve, we are conducting hands-on research on the latest wave of innovations, including tokenization, smart contracts, and AI in payments. We do this to understand how private-sector innovators will use these to improve payments, as well as identify any opportunities to upgrade our own payment infrastructures.
Another way is to engage actively with industry on innovations. That is why, in three weeks, I am convening industry leaders and U.S. policymakers to discuss how to further improve the payment system. That is also why I appreciate coming to events like Sibos, where industry experts within the private sector engage with public-sector officials to discuss how we can best navigate the next frontier of innovations. Thank you.
 
This speech was delivered at the Sibos Frankfurt 2025 conference.
 
Compliments of the Federal Reserve Board of the United StatesThe post The Next Frontier of Payments Innovation – Speech by Governor Christopher J. Waller, Member of the Federal Reserve Board of Governors first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

A digital euro could foster innovation in the European payments system and boost financial inclusion, according to a report published today on the outcome of the first iteration of the digital euro innovation platform – an initiative launched by the European Central Bank (ECB) in October 2024 for collaboration and experimentation with digital euro project stakeholders.
This iteration of the innovation platform brought together almost 70 market participants, including merchants, fintech companies, start-ups, academia, banks and other payment service providers, to explore possible applications of the digital euro.
Participants joined one or both of two workstreams: “visionaries” and “pioneers”. The visionaries focused on gathering innovative ideas and exploring the long-term potential of the digital euro, while the pioneers concentrated on technical experimentation. Both workstreams highlighted the importance of harmonised standards, a shared infrastructure and ongoing collaboration with market participants for ensuring the scalability, reliability and usability of the digital euro across the euro area.
Today’s report presents the findings of the two workstreams. It describes the innovations and applications that the digital euro platform could enable, some of which are highlighted below.
Conditional payments, i.e. payments that are triggered automatically when predefined conditions are met, were identified as a possible key driver of innovation and an example of how the digital euro could improve the day-to-day lives of European citizens. As set out in the current draft legislation, a digital euro would offer core technical capabilities, such as the reservation of funds functionality, which would allow money to be set aside while a payment in progress. Unique features such as this, in conjunction with the harmonised standards established by the digital euro rulebook, would allow payment service providers to develop the additional technical layer needed to enable conditional payments. In online shopping transactions, for example, funds could be released to the seller only after the buyer confirms that the item has been delivered, ensuring greater consumer protection. Insurance reimbursements could be automated and, in the case of delayed services, refunds could be streamlined. For shared mobility services and public transport, conditional payments could enable tap-and-go transactions and automatically calculate the best available fare. These concepts were successfully tested in a simulated digital euro environment.
Conditional payments were also tested in the context of business-to-business (B2B) payments, which typically involve larger amounts and more complex contractual agreements. It was found that a digital euro would contribute to reducing fragmentation and costs for B2B payments, while bringing increased standardisation and liquidity.
Integrated electronic receipts (e-receipts) within the digital euro ecosystem could provide consumers with structured access to their purchase records, simplifying tasks such as returns, warranty claims, expense reporting and personal budgeting. For merchants, e-receipts could significantly reduce operational costs and improve efficiency. Eliminating billions of printed receipts each year would not only simplify people’s lives, but also bring clear environmental benefits such as reducing chemical waste, resource use and emissions. E-receipts would be strongly encrypted, meaning they could only be seen by the buyer and the seller.
The digital euro could also improve inclusion and accessibility, for example with tailored wallets for children to help them learn how to spend and save responsibly from a young age. Students could gain easier access to dedicated benefits and discounts with free digital euro wallets. To ensure accessibility, the digital euro interface could incorporate user-friendly features such as voice-controlled transactions, large-font displays, and guided onboarding processes.
Following the success of these partnerships and amid further demand from market participants, the ECB has decided to launch a second round of experimentation in order to maximise the digital euro’s potential for innovation. More details will be announced during the first half of 2026.
“We asked market participants to imagine the many opportunities a digital euro could offer consumers and merchants. Their enthusiastic response shows the immense scope for the digital euro to play a transformative role in the European payments landscape,” said ECB Executive Board member Piero Cipollone at Bocconi University in Milan, where the report was presented on Friday at a payments conference attended by several innovation platform participants. “By fostering collaboration and providing a harmonised infrastructure, the digital euro can enhance the payment experience for Europeans, while enabling market participants to develop innovative services and business models.”
The digital euro’s extensive reach would ensure that these innovative ideas are instantly accessible to all consumers and merchants in the euro area, addressing the limitations typically associated with the closed ecosystems of other payment methods.
The ideas explored as part of the innovation platform initiative are still at the experimental stage. The Eurosystem will continue engaging with stakeholders to ensure that the digital euro’s design meets the needs of future users and the market.
The full innovation platform report is available on the ECB’s website.
 
Compliments of the European Central BankThe post ECB Presents Findings from Digital Euro Innovation Platform and Announces Second Round of Experimentation first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

European Commission President Ursula von der Leyen unveiled today a €545 million Team Europe package to accelerate Africa’s clean energy transition. This announcement, made at the Global Citizen Festival via video message in the context of the United Nations General Assembly, is an important milestone in the ‘Scaling Up Renewables in Africa‘ campaign, co-hosted with South African President Cyril Ramaphosa.
This campaign raises global awareness and mobilises public and private investments for clean energy generation and access across Africa.
“The choices Africa makes today are shaping the future of the entire world. A clean energy transition on the continent will create jobs, stability, growth and the delivery of our global climate goals. The European Union, with the Global Gateway investment plan, is fully committed to supporting Africa on its clean energy path” said President von der Leyen.
Africa’s renewable energy potential is huge, yet nearly 600 million people still live without access to electricity. How this clean energy transition unfolds will play a big role in shaping future development, regional stability, and progress on climate change.
Investing now in solar, wind, hydro, and geothermal power is not just a moral and development imperative, it is also a strategic choice that strengthens supply chains, creates up to 38 million green jobs by 2030, and makes energy systems more resilient. Through the Global Gateway investment strategy, the European Union is helping accelerate this transition, delivering major investments in generation, transmission, and cross-border electricity trade, while building stable international partnerships.
An acceleration of clean energy projects across Africa
Today’s €545 million package expands the EU and Team Europe’s clean energy efforts in Africa, with new projects supporting electrification, modernise power grids, and improve access to renewables.
Projects announced include:

Côte d’Ivoire (€359.4 million): A high-voltage transmission line (‘Dorsale Est’) to boost regional energy distribution;
Cameroon (€ 59.1 million): Rural electrification for 687 communities, reaching more than 2.5 million people;
Republic of Congo (€ 3.5 million): Expanding access to renewable energy sources, including solar, wind and hydropower;
Lesotho (€25.9 million): Unlocking wind and hydro energy through the Renewable Lesotho programme;
Ghana (€2 million): Laying the groundwork for a large-scale solar park and regional energy trade;
Central Africa (€3.3 million):

A technical assistance mission to the Central African Power Pool (CAPP), (€1.6 million);
A facility for funding research and infrastructure for the Central African Power Pool (CAPP) (€0.5 million);
A feasibility study for the Friendship Loop (‘Boucle de l’Amitié’), a cross-border transmission line linking Pointe Noire, Brazzaville and Kinshasa (€1.2 million);

Madagascar (€ 33.2 million): Expanding electrification with mini grids in rural areas;
Mozambique (€13 million): Supporting a low-emission energy transition and encouraging private sector involvement;
Somalia (€45.5 million): Increasing access to affordable renewable energy, advancing circular economy practices, and building climate-resilient agri-food systems.

Scaling up Renewables in Africa campaign
The ‘Scaling Up Renewables in Africa’ campaign is carried out with the international advocacy organisation Global Citizen and relies on the policy support of the International Energy Agency. It aims to drive new commitments on policy and finance from governments, financial institutions, the private sector and philanthropists. They are encouraged to pledge capital or provide support such as expertise and technical assistance. The campaign will conclude with a high-level event around the G20 summit in South Africa, on 22-23 November 2025.
The campaign also keeps the momentum more broadly towards the ambitious targets of tripling renewable energy and doubling energy efficiency worldwide, set at COP28.
In early October, the Global Gateway Forum in Brussels will bring together governments, financial institutions, and private sector leaders to provide additional support for Africa’s clean energy transition. This momentum will carry into the G20 Summit in Johannesburg. World leaders and investors will come together to commit to the partnerships and financing needed to power Africa’s renewable future.
 
Compliments of the European CommissionThe post European Commission announces €545 million package to scale up renewables in Africa first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

By: Era Dabla-Norris, Raphael Lam, Francisco Roch
Prudent anchors, corrective mechanisms, and supportive institutions can help countries comply with their fiscal rules and commit to sound public finances
Countries have increasingly adopted fiscal rules and frameworks that aim to give clarity and predictability to government spending. But these rules have not been as effective in keeping deficits and debt within their intended limits. As we show in a new report, about 40 percent of advanced economies and nearly two-thirds of emerging markets exceed their own fiscal limits.
Strong and effective fiscal rules are essential to address mounting challenges confronting countries—from record debt and increasing spending pressures on defense to aging populations and development and social needs. With these challenges, public finances are being stretched thin. Here fiscal rules can help: they lay out numerical limits on spending, deficits, or debt, and act as guardrails to promote discipline and signal commitment to sound public finances.
This is not a new idea. Fiscal rules have been used since the mid-1980s, and their use has increased over the last two decades. Today, more than 120 countries have them, according to the IMF Fiscal Rules and Fiscal Council database, covering 122 economies and 54 fiscal councils.

Our report tracks the evolution of fiscal rules and how countries comply with them. In the early years, we find that rules were too rigid and constrained responses to economic downturns. Greater flexibility was eventually introduced and proved effective, allowing governments to provide necessary support for ailing economies, particularly in severe crises such as the pandemic. However, the severe shocks were a significant test for fiscal rules, with many countries’ deficits and debt exceeding their own limits. More than two-thirds of countries have revised their fiscal rules, often making them more flexible without considerably safeguarding public finances.
Effective guardrails
For fiscal rules to be effective, they must strike a careful balance: they should safeguard fiscal sustainability while leaving adequate room and flexibility for priority spending. Our analysis shows that effective rules need to have several elements: they are based on a clear and appropriate target or fiscal anchor to guide policy; they have a robust way to correct course when spending pressures or adverse shocks put the rules off track; and there are supportive fiscal institutions to guide and support their implementation.
First, a prudent fiscal anchor—for example a debt-to-GDP ratio or a medium-term budget balance target—should be tailored within a risk framework to a country’s debt capacity and exposure to shocks. To be credible, they must be easy to monitor,clearly communicated to the public, and closely linked to annual budgets.
Second, when thresholds are breached, countries need clear procedures to get back on track. Pre-defined triggers, timelines, and policy responses can help return to fiscal rule limits—such as requiring governments to submit fiscal plans or take corrective actions—and restore discipline. Some countries go further, using progressive triggers that activate stricter measures, for example as debt nears critical levels.
This mechanism is not just good policy—it also helps countries lower their financing costs. An analysis of six countries (Armenia, Costa Rica, Cyprus, Czech Republic, Poland, and Slovak Republic) shows that well-designed correction mechanisms helped lower the cost of issuing debt by about 0.3 percentage points within six months and 0.75 percentage points within a year, compared to similar economies without effective fiscal rules.

Third, fiscal rules work best when countries have effective institutions to support and implement them. Specifically, medium-term fiscal frameworks should translate fiscal rules into multi-year plans and align short-term budgetary decisions with long-term debt goals.
Fiscal councils can also act as nonpartisan watchdogs, producing and/or evaluating government forecasts, monitoring compliance, and informing the public about the state of government finances. For example, the fiscal council in the Netherlands assesses government forecasts and evaluates the cost of policy initiatives, while providing valuable information to the public. Our analysis shows that countries with more independent fiscal councils tend to experience smaller deficits and better compliance with rules. The bottom line is this: linking annual budgets with medium-term fiscal frameworks and independent oversight can both strengthen policy credibility and make fiscal rules more effective.
Balancing discipline and spending pressures
Governments are facing increasing and legitimate demands to invest in infrastructure, public services, and economic security. Aging societies will require more spending on healthcare and pensions, and many countries are ramping up defense spending.
Putting in place fiscal rules is not inconsistent with these goals. But careful calibration and design of these rules is very important. Low-debt countries may ease their limits to support growth-enhancing spending as long as their debt remains within debt stabilizing limits. By contrast, high-debt countries need to match any new spending with revenue increases and/or reallocate existing expenditures to avoid adding to fiscal and debt risks.
As these pressures intensify, countries must strengthen—not weaken—their commitment to fiscal discipline and ensure that public finances remain a source of stability, not vulnerability.
 
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State launches New Renewable Energy Solicitation
Directive Prioritizes Shovel-Ready Projects Eligible for Federal Tax Credits To Save New Yorkers Money

As part of New York’s all-of-the-above energy strategy, Governor Kathy Hochul today announced a coordinated set of actions to accelerate the deployment and construction of reliable and clean energy across New York State that will help stabilize energy prices. Recognizing the near-term need for power to meet increasing electricity demand as well as economic development needs and the importance of adapting to shifting federal policies, Governor Hochul is launching a new solicitation for renewable energy and directing state agencies to work together to responsibly advance shovel-ready renewable energy projects as quickly as possible. These efforts are designed to support New York ratepayers by using sunsetting federal clean energy tax credits to bring down costs.
“While the federal government takes us backward on energy policy, New York will not be thwarted in its commitment to clean energy. By directing our state agencies to move projects across the finish line, we are seizing every opportunity to leverage federal incentives, reduce costs for ratepayers, and build a more resilient, sustainable and reliable energy grid,” Governor Hochul said. “Together, these actions are expected to unlock billions in private investment, create thousands of good-paying jobs, and build a durable energy economy that benefits New Yorkers for decades to come.”
New York’s current pipeline of large-scale renewable energy is comprised of 102 solar, land-based wind, hydroelectric and offshore wind projects operating and under development that will deliver over 9.7 gigawatts of clean power to the grid when completed – enough energy to power over 3 million New York homes. The development of projects as a result of this solicitation is expected to spur over five billion dollars in clean energy investments and create more than 2,500 family-sustaining jobs in the energy economy across New York.
New York State Energy Research and Development Authority President and CEO Doreen M. Harris said, “New York is all about progress and we are not stopping. We are going to continue building out our energy economy and growing our already robust land-based renewables portfolio. This solicitation will serve as another building block to help ensure a continuous pipeline of viable large-scale projects as part of New York’s versatile clean energy future.”
2025 Land-Based Renewable Energy Solicitation (Tier 1 RFP)
NYSERDA today launched the 2025 Land-Based Renewable Energy Solicitation seeking to procure eligible large-scale wind, solar, and other renewable energy projects to support advancement of clean energy deployment while delivering reliable energy to all New Yorkers.
The solicitation is designed to advance late-stage large-scale renewable energy projects ready to commence construction in New York. It incorporates best practices and lessons learned from prior procurements, including key provisions on component cost indexing, labor provisions, stakeholder engagement requirements, disadvantaged community commitments, and agricultural land preservation to ensure an equitable energy transition that benefits all New Yorkers. To expedite contracting, NYSERDA has also streamlined bid requirements, with full details outlined in the solicitation documents.
The process for submitting proposals into the land-based renewables solicitation will be conducted in two steps:
• Eligibility applications are due on October 21, 2025.
• Final proposals from eligible participants are due on December 4, 2025, by 3 p.m.
For details, please visit the Large-Scale Renewables Solicitation page. Conditional award notifications are expected to be issued to proposers in February 2026, followed by an announcement of selected projects once the awarded contracts have been executed.
Directive to Focus on Projects that May Qualify for Existing Federal Tax Credits
State agencies will intensify efforts to advance shovel-ready renewable energy projects, with a focus on qualifying projects that seek to access existing federal tax credits that will expire. This whole-of-government approach will responsibly streamline permitting, interconnection, financing, and contracting processes to ensure that as many projects as possible reach construction quickly, providing clean power to New York homes and businesses.
New York State Public Service Commission Chair and CEO Rory M. Christian said, “We stand ready to assist our sister agencies in the development of appropriate clean energy projects in New York State. Governor Hochul’s very timely announcement will help ensure a continuous development of renewable energy projects that will help spur the creation of much needed clean energy which will strengthen the reliability of our electric grid while creating good-paying jobs.”
New York State Department of Environmental Conservation Commissioner Amanda Lefton said, “Renewable energy development is one of the most important keys to reducing harmful pollution, generating green jobs, and creating more sustainable communities here in New York and across the country. Governor Hochul’s directive announced today will help further accelerate clean energy momentum already underway by comprehensive policies, programs, and investments that continue to make New York State a national leader in zero-emission energy production. DEC continues to work with our partner agencies to ensure efficient permitting processes that support these efforts.”
State Senator Kevin Parker said, “Accelerating renewable energy projects is critical to ensuring New York families have access to clean, affordable, and reliable power when they need it most. Every day we move forward means more jobs created, more communities protected from rising costs, and more progress toward a healthier environment. While uncertainty in Washington threatens to slow the clean energy transition, New York is proving that we will not wait we will lead. I remain committed to making sure our state continues to deliver for working families and disadvantaged communities, advancing projects that strengthen our energy future and our economy.”
Assemblymember Deborah Glick said, “Thank you, Governor Hochul, for recognizing that New Yorkers need an expanded grid with reliable, clean energy and lower costs. With our current federal government working hand in glove with the fossil fuel industry, it is important for New York to fully utilize the remaining federal tax credits to realize as many renewable energy projects as possible. This will not only be better for the environment, but will provide cleaner, more reliable, and less expensive energy and reduce our reliance on the more volatile and polluting fossil fuel industry.”
State Senator Peter Harckham said, “This is exactly the kind of forward-thinking climate action New York needs. Renewable energy projects are a major economic opportunity waiting to be unlocked. Expediting the Land-Based Tier 1 Renewable Energy Solicitation will mean more good-paying jobs for New Yorkers, lower utility bills for ratepayers and cleaner air for all. Thank you to Governor Hochul and NYSERDA for moving this critical work forward.”
New York League of Conservation Voters President Julie Tighe said, “While the federal government retreats, New York continues to march forward with reliable, affordable clean energy. NYSERDA’s plan to accelerate the construction and deployment of renewables is a critical step forward that will cut pollution, create good-paying jobs, and make our communities healthier and our grid more resilient. We applaud Governor Hochul for prioritizing the clean energy transition and showing the country what strong state leadership looks like.”
New York State AFL-CIO President Mario Cilento said, “Today’s announcement marks another significant step toward ensuring energy reliability and moving us closer to achieving New York’s renewable energy goals. We look forward to continuing to work with NYSERDA to ensure these projects adhere to robust labor standards and protections, creating pathways to solid union careers as we continue to advance toward a clean energy future.”
New York State Building Trades President Gary LaBarbera said, “The continued advancement of clean energy development in New York State represents significant progress in establishing our green economy and the good paying union careers that come with it. The deployment of these projects will not only help us reach our standard-setting climate goals and deliver reliable clean energy to all New Yorkers, but it will also open up countless opportunities for hardworking people to pursue the middle class and support their families. We applaud NYSERDA for their ongoing work to streamline these crucial energy initiatives and look forward to our continued collaboration in pushing these projects forward.”
Alliance for Clean Energy New York Executive Director Marguerite Wells said, “Wind and solar projects are ready to meet the moment and provide affordable power to New Yorkers. We applaud Gov. Hochul for advancing these clean energy technologies at a time when we need them most. Against a backdrop of rising costs and the ever-present realities of climate change, renewables can revitalize upstate economies, provide much-needed power, and do so in an efficient and cost-effective manner.”
Natural Resources Defense Council Managing Director of Power Kit Kennedy said, “Building clean energy projects quickly and fairly is crucial for cutting electricity costs and creating quality jobs for New Yorkers. Every action that New York State takes to speed up renewable energy deployment helps achieve these goals. With the federal government in full retreat and denial, New York’s climate leadership is more important than ever.”
New York Solar Energy Industries Association Executive Director Noah Ginsburg said, “As the federal government eliminates support for affordable clean energy, states need to act quickly to protect electric ratepayers and the clean energy workforce. New York Solar Energy Industries Association (NYSEIA) applauds Governor Hochul for taking action to accelerate renewable energy project development and construction. These actions will ensure that New York leverages federal funding for clean energy projects today while setting the stage for cost-effective permitting and interconnection tomorrow.”
Advanced Energy United New York Policy Lead Kristina Persaud said, “We commend Governor Hochul for delivering clean, reliable, and affordable energy to New Yorkers. Large-scale renewable projects don’t just keep energy costs in check—they also strengthen our electric grid and create good jobs across the state. This procurement keeps New York on track to meet our nation-leading clean energy targets and reaffirms the Empire State’s commitment to building a clean, affordable energy future.”
For more than fifty years, NYSERDA has been a trusted and objective resource for New Yorkers, taking on the critical role of energy planning and policy analysis, along with making investments that drive New York toward a more sustainable future. The launch of this solicitation continues to fuel the advancement of innovative technologies and solutions that will benefit New York residents as well as businesses.
New York State’s Climate Agenda
New York State’s climate agenda calls for an affordable and just transition to a clean energy economy that creates family-sustaining jobs, promotes economic growth through green investments, and directs a minimum of 35 percent of the benefits to disadvantaged communities. New York is advancing a suite of efforts to achieve an emissions-free economy by 2050, including in the energy, buildings, transportation, and waste sectors.
 

Compliments of the New York State Governor’s Office

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By Claudia Mann

Good statistics are accurate, timely, consistent and comparable. Only then can they be the unbiased reality check needed for responsible decision-making. The ECB blog looks back at past mistakes and what Europe has learned from them.

We are often asked: how independent are European statistics, really? Following recent international headlines, this question has gained new momentum. To answer it, let me take you back to Europe’s own “deficit drama” in statistics, explain how it was resolved, and illustrate how the governance we now have in place is a rock-solid safeguard for accountability, markets and policymaking.
From deficit revisions to stronger statistics
The credibility of European statistics came under scrutiny in 2009 when Greece revised its government deficit statistics sharply upwards. This was not just a fiscal matter – it highlighted the broader challenges involved in ensuring trust in official numbers.
“Στέργει γὰρ οὐδεὶς ἄγγελον κακῶν ἐπῶν”(Nobody likes the man who brings bad news), Antigone 276-277, Sophocles
The European response was substantial: to maintain trust, European legislation gave Eurostat – the statistical office of the Union – and the national statistical offices stronger verification powers in 2010. Eurostat also received mandatory access to government accounts, the right to carry out on-site inspections, and new laws strengthened sanctions for misreporting. Today, there is full transparency concerning the real magnitude of government spending – or, as the saying goes, we now call a spade a spade.
However, subsequent legal proceedings initiated in 2010 by the Greek judicial authorities against Andreas Georgiou, then head of the Hellenic Statistical Authority (ELSTAT), drew wide international attention. He was accused of allegedly conspiring to artificially inflate the 2009 government deficit figures while these numbers were validated by Eurostat. These legal proceedings were widely considered to have a substantial political context.[1] This case was one reason for the reinforcement of statistical independence through the regulation on the European Statistical System partnership in 2015.[2] The new law not only clarified Eurostat’s coordination role, but also explicitly strengthened the call for national statistical authorities and their heads to be professionally independent. Notably, it brought in safeguards to ensure that appointments and dismissals are transparent and based only on professional criteria.
Two systems, one culture of quality
Before discussing more lessons on good statistics, let’s take a look at the architecture of public statistics in Europe. European official statistics are produced by two systems: the European Statistical System (ESS), composed of Eurostat and the national statistical offices, and the European System of Central Banks (ESCB), made up of the ECB and the national central banks. Central banks often compile balance of payments statistics, financial accounts and government debt data. Statistical offices compile figures on inflation, GDP and the government deficit.
These two systems work under different laws and structures. Yet cooperation runs deep – from working groups to high-level committees – and the methods, processes and results are highly transparent. To guarantee trust, the ESCB follows its own Public Commitment on European Statistics[3], which is equivalent to the Code of Practice adopted by the ESS[4]. Both ensure that statisticians – be it in the central banks or statistical institutes – work under identical principles of independence, soundness and quality.
Figure 1

Two statistical systems working closely together in multilateral settings such as the Committee on Monetary, Financial and Balance of Payments Statistics (CMFB)

Source: ECB.

Certainly, our governance is complex, multilateral and sometimes feels intrusive. This, however, is a strength. Our thinking is exposed to many stakeholders early on. So, any attempt at manipulation would not only be unlawful – it would be practically impossible. A bit like trying to make fake honey in front of an entire beekeeping club – too many people would notice. And once exposed, your reputation would be damaged beyond repair.
HICP: a solid, independent benchmark
But why are we so keen to have reliable statistics in the first place? To showcase this, let’s take a closer look at one of the cornerstones of statistics, where figures which are essential for monetary policy are compiled outside of the bank. The HICP (Harmonised Index of Consumer Prices) is the official measure of inflation in the euro area, showing how the average prices of goods and services bought by households change over time. It is compiled by Eurostat and the national statistical offices. The diverse sample behind the HICP takes into account what we buy, how much, and where we do that, be it in a supermarket or an online shop. The index reflects realistic consumption patterns estimated from national accounts, household budget surveys and transaction data. To ensure its accuracy, these weights are updated annually. To reflect what consumers actually pay, the HICP also includes taxes and discounts. For this, each month millions of individual prices are collected to calculate the EU HICP from all Member States, thereby ensuring a robust and representative outcome. It is also one of our most timely indicators: we already have the euro area (and EU) flash estimate for the reference month on the last day of the month or shortly thereafter. This provides policymakers with crucial real-time information which is fundamental for their decisions.
Though essential for its policy, the ECB (ESCB) does not calculate the HICP. That is the exclusive responsibility of the ESS – and rightly so. We use the data as a core reference indicator; we are not the calculator. This separation gives assurance to markets, the public and policymakers that the methodology behind the inflation measure guiding monetary policy is not influenced by the central bank.
Chart 1

Development of the Harmonised Index of Consumer Prices in the euro area

Left-hand scale: HICP monthly index with reference baseline 2015=100; right-hand scale: year-on-year rate of change in percentage.

Source: Eurostat.

For another tangible example, consider the €STR, the euro short-term rate, which replaced EONIA as part of the global reforms that followed the LIBOR manipulation scandals. The LIBOR case showed how fragile benchmark interest rates can be, as they often rely only on price quotes and not on actual transactions or a sufficient number of transactions. The global response of public authorities to the LIBOR manipulation led to a shift towards more robust rates, based on real trades with stronger methodology and governance. In the euro area the newly developed €STR benchmark rate replaced EONIA.
EONIA was an overnight transaction-based lending rate administered by the European Money Markets Institute (EMMI), a private benchmark provider. With the application of the EU Benchmarks Regulation[5], it no longer complied with the new standards – mainly because of the lack of sufficient underlying transactions and the high concentration of contributions. The ESCB therefore developed the €STR, which reflects the wholesale euro unsecured overnight borrowing costs of banks located in the euro area, and entrusted its production to the ESCB’s statistical function, building on its solid reputation.
Since 2 October 2019 the €STR has been published Monday through Friday at 08:00, based on transactions from the previous day. It is a major achievement, building on our long-term investments in daily micro data collections. The daily collection of money market data is more than a technical exercise: it supports the analysis of euro money markets and monetary policy transmission, provides early signals of potential fragmentation and reveals market expectations. This again is crucial information for those who decide on monetary policy.
Chart 2

Evolution of €STR rates since its introduction

Source: ECB.

What makes for good statistics?
As the HICP and the €STR show, good statistics are accurate, timely, consistent and comparable. And, above all, they can be put to use where they are needed. For this, statistics need to be reliable.
The independence of statisticians and statistical offices from direct political or market pressure is one precondition for good statistics, and in the case of central banks, this independence is firmly safeguarded too. Equally important are transparent and robust statistical processes, which allow for sources and methods to be scrutinised, as illustrated by the ECB’s annual methodology reviews for the €STR. Finally, sound quality management ensures that errors are corrected, and improvements are made when necessary. This is why in the above-mentioned reviews we maintain a dedicated transparency page on errors.[6]
Statistics are a pillar of accountability
Independent statistics are not an academic concern. They are a pillar of accountability and effective policy. Without appropriate governance to ensure their relevance and quality, markets and people cannot trust the figures on which their choices depend.
Thanks to the rules we have in place – from the Treaty to the Code of Practice – and thanks to our deeply rooted culture of multilateral cooperation, policymakers, market participants and journalists can be confident that European statistics are compiled to the highest standards, free from interference or meddling. That trust is indispensable for our work and for Europe’s success.
The views expressed in each blog entry are those of the author(s) and do not necessarily represent the views of the European Central Bank and the Eurosystem.
Check out The ECB Blog and subscribe for future posts.
For topics relating to banking supervision, why not have a look at The Supervision Blog?

OPINION of the European Statistical Governance Advisory Board (ESGAB), concerning professional statistical independence and staffing resources in the Hellenic Statistical Authority (ELSTAT).
Regulation (EU) 2015/759 of the European Parliament and of the Council of 29 April 2015 amending Regulation (EC) No 223/2009 on European statistics.
Public commitment on European statistics by the ESCB.
European Statistics Code of Practice.
Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014.
See the €STR Transparency on errors page on the ECB’s website.

 
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The European Commission is taking action against several EU Member States that have failed to notify the Commission of measures they have adopted to transpose EU Directives into their national laws. The deadline to transpose these Directives has expired recently. The Commission is sending a letter of formal notice to these Member States, giving them two months to reply and complete the transposition of the Directives. If they fail to do so, the Commission may pass to a next step and issue a reasoned opinion. The Member States in question have failed to fully transpose four EU directives related to financial stability, home affairs and health. The Commission is urging them to take immediate action to bring their laws in line with EU requirements.
Commission calls on Member States to ensure comprehensive access to information of beneficial ownership to prevent money laundering and terrorist financing
The European Commission decided to open infringement procedures by sending a letter of formal notice to Belgium, Denmark, Germany, Estonia, Greece, Italy, Cyprus, Croatia, Poland, Slovakia and Sweden for failing to fully notify national measures transposing the 6th Anti-Money Laundering Directive (Directive (EU) 2024/1640) to guarantee comprehensive access to information of beneficial ownership of legal entities, trusts or similar arrangements. The 6th AML Directive mainly deals with organisational and institutional issues of the anti-money laundering and countering the finance of terrorism preventive framework, which are addressed respectively to the Member States, their supervisory authorities, and Financial Intelligence Units. The provisions of the Directive must be transposed by different dates. In general, Member States must transpose the major part of the Directive by 10 July 2027, when the 4th Anti-Money Laundering Directive as amended by the fifth one (Directive (EU) 2015/849) will be repealed. By the first deadline, 10 July 2025, Member States had to guarantee comprehensive access to information of beneficial ownership of legal entities, trusts or similar arrangements (including access by persons with a legitimate interest). To date, 11 Member States have not declared full transposition by this first legal deadline. The gradual implementation of the 6th Anti-Money Laundering Directive is key to preventing any vulnerabilities of their financial systems and ensuring that all Member States consistently and effectively uphold their anti-money laundering standards. The Commission is therefore sending letters of formal notice to Belgium, Denmark, Germany, Estonia, Greece, Italy, Cyprus, Croatia, Poland, Slovakia and Sweden, which now have two months to complete their transposition and notify their measures to the Commission. In the absence of a satisfactory response, the Commission may decide to issue a reasoned opinion.
Commission calls on Member States to fully transpose the European Single Access Point (ESAP) Omnibus Directive to ensure investors’ access to corporate public information 
The European Commission decided to open infringement procedures by sending a letter of formal notice to Bulgaria, Estonia, Spain, France, Croatia, Italy, Latvia, Lithuania, the Netherlands,  Austria, Portugal, Poland, Romania, Slovenia and Sweden for failing to fully transpose the European Single Access Point (ESAP) Omnibus Directive (Directive EU 2023/2864) in relation to the changes introduced in the Transparency Directive (Directive 2004/109/EC). The ESAP Omnibus Directive is part of the ESAP legislative package that facilitates the creation of a centralised mechanism offering easily accessible, comparable and usable public information to investors and other stakeholders. The legislative package foresees three phases of ESAP development. The first phase will begin in July 2026 when the information published according to the Transparency Directive, as well as to Regulation (EU) 2017/1129 (Prospectus Regulation) and Regulation (EU) No 236/2012 (Short Selling Regulation) will start to be submitted to the national competent authorities for the purpose of making it available on ESAP. For that first step, Member States had to transpose the changes introduced in the Transparency Directive by 10 July 2025. The Commission is therefore sending letters of formal notice to  Bulgaria, Estonia, Spain, France, Croatia, Italy, Latvia, Lithuania, the Netherlands,  Austria, Portugal, Poland, Romania, Slovenia and Sweden, which now have two months to complete their transposition and notify their measures to the Commission. In the absence of a satisfactory response, the Commission may decide to issue a reasoned opinion.
Commission calls on Member States to fully transpose the new rules as regards the minimum depth of markings on firearms and essential components
The European Commission decided to open infringement procedures by sending a letter of formal notice to five Member States (Bulgaria, Czechia, Poland, Portugal and Finland) for failing to notify national measures  transposing the Commission Implementing Directive (EU) 2024/325. Member States had to transpose the Implementing Directive into national law and to notify the measures to the Commission by 22 July 2025. The act amends Commission Implementing Directive 2019/68 and establishes a new rule regarding the minimum depth of markings of firearms and essential components to be 0.08mm. The technical requirement is added to the existing standards of the current Implementing Act, which does not specify a minimum depth of markings. A minimum depth at EU level ensures a level playing field for producers and facilitates trade in the internal market. The minimum depth set also corresponds with the standards applicable in the most important markets in third countries, ensuring compatibility for the export of firearms. Marking ensures traceability of firearms and is key to the safety and security of EU citizens. The Commission is therefore sending letters of formal notice to the five Member States concerned. They will have two months to complete their transposition and notify their measures to the Commission. In the absence of a satisfactory response, the Commission may decide to issue a reasoned opinion.
Commission calls on Member States to fully transpose the Directive to ensure harmonisation in the area of plant health
The European Commission decided to open infringement procedures by sending letters of formal notice to Denmark, Cyprus, Luxembourg, Malta, Austria and Slovakia for failing to fully transpose Commission Directive (EU) 2025/145 as regards the listing of pests of plants on fruit plant propagating material and fruit plants intended for fruit production. Member States had to transpose this Directive into national law by 31 July 2025. The Directive aims to align the rules for marketing fruit plant material and fruit plants for production with plant health rules. Full implementation of the legislation is key to continuing harmonisation among all Member States in the area of plant health. The Commission is therefore sending letters of formal notice to Denmark, Cyprus, Luxembourg, Malta, Austria and Slovakia, which now have two months to complete their transposition and notify their measures to the Commission. In the absence of a satisfactory response, the Commission may decide to issue a reasoned opinion. 
 
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