Bernd Lange, chair of Parliament’s International Trade Committee and standing rapporteur for the US, has issued the following statement regarding the EU-US trade deal.

Following a Wednesday afternoon meeting of the committee’s shadow rapporteurs (i.e. political group representatives responsible for work on the legislation linked to the implementation of the Turnberry deal), Bernd Lange (S&D, Germany) said: “A majority of shadow rapporteurs of the International Trade Committee have today decided to resume work on the two Turnberry legislative proposals. A vote could therefore potentially take place at the next committee meeting on Tuesday 24 February.
“Trade Committee members remain committed to advancing work on the two legislative proposals expeditiously, provided the US respects the territorial integrity and sovereignty of the Union and its member states, and honours the terms of the Turnberry Deal.
“In this spirit, we have also agreed to include among the grounds for suspension of the tariff preferences granted under both legislative proposals threats to the essential security interests of the Union or its member states, including their territorial integrity.”
Background
In July 2025, the EU and the US reached a political agreement on tariff and trade issues (Turnberry Deal). These were outlined in detail in an August 2025 joint statement announcing an EU-US Framework Agreement. The Commission then published two legislative proposals aimed at implementing certain tariff aspects of the EU-US Framework Agreement.
The International Trade Committee is responsible for steering the legislation through Parliament and for leading negotiations with EU governments on the final shape of the customs duties on goods imports from the US.

 
 
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The European Commission has sent a Statement of Objections to Meta, setting out its preliminary view that Meta breached EU antitrust rules by excluding third party Artificial Intelligence (‘AI’) assistants from accessing and interacting with users on WhatsApp. Meta’s conduct risks blocking competitors from entering or expanding in the rapidly growing market for AI assistants.
The Commission therefore intends to impose interim measures to prevent this policy change from causing serious and irreparable harm on the market, subject to Meta’s reply and rights of defence.
Meta’s flagship products are its social networks, such as Facebook and Instagram, and consumer communication applications, such as WhatsApp and Messenger. It also operates online advertising services and virtual and augmented reality products. Meta provides a general-purpose AI assistant, Meta AI.
On 15 October 2025, Meta announced an update of its WhatsApp Business Solution Terms, effectively banning third-party general-purpose AI assistants from the application. As a result, since 15 January 2026, the only AI assistant available on WhatsApp is Meta’s own tool, Meta AI, while competitors have been excluded.
The Commission has informed Meta that this policy change appears at first sight to be in breach of EU competition rules.

The Commission’s investigation
The Commission preliminarily concludes that:

Meta is likely to be dominant in the European Economic Area (‘EEA’) market for consumer communication applications, notably through WhatsApp.
Meta is likely to be abusing this dominant position by refusing access to WhatsApp to other businesses, including third-party AI assistants. At this stage, the Commission considers that WhatsApp is an important entry point to enable general-purpose AI assistants reach consumers.
There is an urgent need for protective measures due to the risk of serious and irreparable damage to competition. Meta’s conduct risks raising barriers to entry and expansion, and irreparably marginalising smaller competitors on the market for general-purpose AI assistants.

The sending of a Statement of Objections on interim measures does not prejudge the outcome of the investigation. Meta now has the possibility to reply to the Commission’s concerns.
The Statement of Objections covers the EEA except for Italy, where the Italian Competition Authority imposed interim measures on Meta in December 2025.
Background
On 4 December 2025, the Commission opened formal proceedings in the context of this ongoing investigation.
Article 102 Treaty on the Functioning of the European Union (‘TFEU’) and Article 54 of the EEA Agreement prohibit the abuse of a dominant position that may affect trade and prevent or restrict competition within the Single Market. The implementation of Article 102 TFEU is defined in Regulation 1/2003.
Pursuant to Article 8(1) Regulation 1/2003, interim measures may be imposed if, at first sight, there is an infringement of competition law rules, as well as an urgent need for protective measures due to the risk of serious and irreparable harm to competition.
A Statement of Objections is a formal step in the Commission’s investigations into the necessity of imposing interim measures. The Commission informs the parties concerned of its preliminary findings in writing. The parties can then examine the documents in the Commission’s investigation file, reply in writing and request an oral hearing to present their views on the case before representatives of the Commission and national competition authorities.
If the Commission concludes, after the parties have exercised their rights of defence, that the conditions for interim measures are met, it can adopt a decision imposing such measures. The adoption of an interim measures’ decision does not prejudge the final findings of the Commission on the substance of the case.
For more information
More information will be made available under the case number AT.41034 in the public case register on the Commission’s competition website.
 
 
 
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Speech by Piero Cipollone, Member of the Executive Board of the ECB, at the event “The digital euro in Cyprus”
Nicosia, 6 February 2026
It is a pleasure to be in Cyprus today.
I would like to thank Governor Patsalides and the organisers for inviting me.
Cyprus’s Presidency comes at a pivotal moment for Europe. In a global environment defined by rapid change, strategic uncertainty and geopolitical tensions, the Presidency’s priority, “Autonomy through security and competitiveness”, captures Europe’s ambition to strengthen its independence by building a strong, innovative and competitive economy.
This is not a call for protectionism. It is a call to invest in Europe’s collective capacity to innovate and to compete globally.
The ECB, along with the euro area national central banks, stands ready to play its part in turning the concept of autonomy through security and competitiveness into practical actions and solutions.
We will focus on an area that is intrinsically linked to our institutional mandate: issuing central bank money and promoting the smooth operation of payment systems.
There are two types of central bank money: retail money, which is used by people and businesses to purchase goods and services, and wholesale money, which is used by banks to settle claims between each other.
Digital payments are now the norm, and new technologies are disrupting financial services. While this brings exciting opportunities to boost growth, it also comes with challenges. We need to make sure central bank money remains fit for a digital world and thereby safeguard Europe’s monetary sovereignty in a digital world.
On the wholesale side, the lack of a widely available euro-denominated asset to settle transactions using distributed ledger technologies (DLT) creates a void that, if unaddressed, could be filled by non-European solutions. This would create new dependencies and push the euro into a secondary role in global digital finance.[1]
To address this, the Eurosystem has launched a strategy to settle transactions recorded on DLT in central bank money. This will provide a risk-free asset that supports the growth of an integrated and dynamic European digital finance ecosystem. Our strategy consists of two complementary initiatives: Pontes and Appia.[2] We are making swift progress here and aim to launch Pontes, our initial solution for cash settlement, during the third quarter of this year. Appia will develop a vision for Europe’s future digital finance ecosystem.[3]
Similarly, in the area of cross-border payments, the rapid growth of US dollar-denominated stablecoins risks displacing the role of euro commercial bank money. We are making rapid advances on this too, as we unlock faster, cheaper and more transparent cross‑border payments by interlinking Europe’s fast payment system with those of other countries.[4]
But there is one domain where Europe’s sovereignty is already under pressure: retail payments.
The role of cash – our sovereign means of payment – is declining as digitalisation accelerates. And almost two-thirds of card-based transactions in the euro area are carried out by non-European companies. In 13 euro area countries, including Cyprus, in‑store payments depend entirely on international card schemes.
This is the challenge I would like to focus on today as I make the most of having so many different stakeholders in one room, including Members of the European Parliament, national politicians, consumers, merchants and banks.
The ECB is committed to acting in line with its Treaty mandate in this area: to provide sovereign money to Europeans. However, the ECB cannot implement a solution without a robust legal framework to support it. This is why the ongoing work of European co-legislators is essential.
I will first explain why the digital euro is so important, particularly in the current context. I will then describe the many practical benefits it would bring to consumers, merchants and banks across the euro area. Finally, I will outline why we are optimistic that a public-private approach can help build a more resilient European payments system in the future.
The case for digital cash
Let me start with a simple observation: the way we pay has changed more in the past few years than in the previous 50.
Today, when we pay a bill, book a hotel or shop online, we rarely use cash.
For example, the ECB’s study on the payment attitudes of consumers in the euro area shows that here in Cyprus, the share of e-commerce payments increased from around 1% in 2019 to roughly 26% in 2024 – a striking example of how quickly digital payments have become part of everyday life.[5]
Across the euro area, digital payments are increasingly the norm and cash can no longer be used to pay in all situations. Online shopping already accounts for more than one-third of retail transactions, yet cash cannot be used online.
This creates a structural gap in the monetary system: our economy is becoming increasingly digital, but central bank money remains confined to physical cash in retail transactions.
Make no mistake: we will continue to issue banknotes and we are working hard to ensure physical cash remains widely accepted and available.[6] In fact, we are preparing to produce and issue a third series of euro banknotes featuring a new design that Europeans can strongly relate to.
But the ECB must ensure that, in this digital age, public money satisfies the evolving needs of Europeans. Therefore, we are getting ready to complement physical cash with its digital equivalent: a digital euro.
This is not a side project – it forms part of the Eurosystem’s core tasks as defined in the Treaty: providing means of payment with legal tender status and issuing money as a public good.
By preparing for a digital euro, we are simply adapting to evolving technologies and preferences, and preserving Europeans’ freedom to pay with their money – the sovereign money issued by their central bank.
As a digital form of cash, the digital euro would ensure that central bank money remains available and usable in an increasingly digital economy, upholding its role as a trusted anchor of our monetary system.
Benefits for Europe’s autonomy
Given the current environment of growing geopolitical tensions, the digital euro is more than just a “nice to have”. As the use of cash declines, we increasingly rely on complex digital technologies that operate largely in the background.
As European citizens, we want to avoid a situation where Europe is overly dependent on payment systems that are not in our hands.
Payment systems have become part of Europe’s critical infrastructure, alongside energy, transport and telecommunications. The resilience and security of this infrastructure directly affects our economic stability and strategic autonomy. Imagine that digital payments weren’t possible, even just for a day. What effect would this have on society?
Cyprus, like the rest of Europe, is highly dependent on international providers across virtually all use cases, from e-commerce and person-to-person payments to in-store transactions.
Card payments are a case in point. During the first half of 2025 card payments accounted for 74.5% of all cashless transactions in Cyprus – the second highest in the euro area.[7] But there are no European solutions available for card payments in Cyprus.
This level of dependence means that critical parts of Europe’s payment infrastructure are owned and operated outside the euro area. At a time when resilience and strategic autonomy matter more than ever, this creates vulnerabilities that we cannot afford to ignore.
A digital euro, built on European infrastructure, would allow Europe to regain ownership of the rails on which its payment system runs and thereby strengthen our autonomy.
Benefits for consumers
Our motivation is clear, but what concrete benefits would the digital euro bring for consumers?
The digital euro would bring the simplicity and the convenience of being able to pay with a single solution – for example your smart phone. It would also ensure that we always have the freedom to choose to pay with a public means of payment – not only in physical form, but also digitally.
In fact, in a Eurosystem survey, 66% of Europeans said they would be interested in trying a digital euro after the concept was explained to them.[8]
The digital euro would be a payment solution for every occasion. It could be used anytime and anywhere in the euro area – just like cash, but in digital form. It would be universally accepted and free of charge for basic use.
It would work both online and offline. Offline functionality is particularly important, as it ensures resilience in situations where connectivity is limited and allows people to pay digitally with a level of privacy comparable to cash. For offline digital euro transactions, personal transaction details would be known only to the payer and the payee. And for online payments, the ECB and the national central banks would not be able to identify the payer or the payee: we would only see encrypted codes and the transaction amount. The link between these codes and the identities of the payer and the payee would only be known to their banks.[9]
To fulfil its goal of serving as a digital complement to cash, the digital euro would be accessible to everyone, including people who are financially and digitally vulnerable and people with disabilities. We have just signed a collaboration agreement with the ONCE Foundation for Cooperation and Social Inclusion of People with Disabilities[10] to promote and ensure universal access to the digital euro.
In short, the digital euro would combine the convenience of digital payments with the trust, safety and privacy that people associate with cash.
Benefits for merchants
The digital euro would also bring tangible benefits for merchants.
Today, many European merchants depend heavily on international card schemes, which often come with high and non-transparent fees. This is particularly the case for merchants in Cyprus, where it is compulsory for retailers to accept card payments.[11]
The digital euro would offer a European alternative that is accepted across the euro area, thereby putting merchants in a stronger position to negotiate fees.
Today small merchants – including in Cyprus, where very small businesses are a central part of the economy – pay up to four times more for card payments than larger merchants.[12] With the digital euro, these small merchants can expect to pay approximately half of what they are paying today for digital payments. And this would also give them more power to negotiate lower fees than what they pay today.
Larger merchants would need to negotiate a lower charge individually. Given that the digital euro does not charge scheme fees a balanced allocation of these cost savings is important to ensure all stakeholders in the digital euro ecosystem benefit.
From the outset, the ECB has worked closely with merchants and their representatives. This engagement includes high-level meetings with President Christine Lagarde as well as technical workshops at staff level. The design of the digital euro reflects what merchants consider essential: seamless integration with existing checkout systems, ease of use, reliability and resilience.[13]
The digital euro would allow merchants to receive payments instantly. And thanks to its offline functionality, payments could still be accepted even when internet connectivity is temporarily unavailable.
Benefits for payment service providers
Let me now turn to the payment service providers, in particular banks, which play a central role in the digital euro project.
We have designed the digital euro in a way that ensures banks will not be disintermediated.
Right from the start, we envisaged that the digital euro would be distributed through banks and other supervised intermediaries. Just as they are for cash, banks will remain the primary interface for users.
Also, digital euro holdings will not be remunerated and will be subject to holding limits to avoid the risk of excessive deposit outflows, especially in times of stress. Our recent technical assessments confirm that using the digital euro for day-to-day payments would not undermine financial stability.[14] And because it will be possible to link the digital euro wallet to a commercial bank account, people will be able to pay and be paid seamlessly in digital euro, even for larger amounts.
While preserving financial stability, the digital euro would also make it more advantageous for banks to offer payment solutions to their clients. Today, with international card schemes, banks lose fees. With big tech mobile payment solutions, they lose both fees and data. And in the future, with stablecoins – which do not have holding limits – they would lose fees, data and stable retail deposits.
But the compensation model envisaged for the digital euro ensures that banks will benefit when payments move from these solutions to the digital euro. As I already mentioned, this is because the Eurosystem will not charge scheme or settlement fees, creating savings that can be distributed among banks and merchants.
European rails for digital payments
In sum, the digital euro will deliver tangible benefits to European citizens, merchants and payment service providers alike – it is a win-win for Europe.
We strongly believe in public-private partnership when it comes to enhancing the resilience of our payment systems and strengthening our autonomy. And both sides of this partnership are moving forward.
On the public side, the digital euro project is advancing well, both technically and legislatively.
On the technical front, we are continuing the preparations and building the necessary technical capacity ahead of a possible decision to issue. As part of this work, we will shortly publish a call for interest inviting payment service providers to take part in our pilot exercise.[15]
On the legislative front, we welcome the Council of the European Union’s agreement on its negotiating position on the proposed digital euro Regulation.[16] This agreement by Member States, including Cyprus, is a decisive step towards a digital euro.
The Council’s position preserves the key pillars of the European Commission’s proposal, including legal tender status, mandatory distribution and acceptance as well as online and offline functionalities. It also introduces targeted adjustments that address some of the concerns raised by European banks.[17]
In parallel, the European Parliament is actively discussing the proposal and is expected to reach its position in May.
On the private sector side, we welcome the recent announcement on the collaboration between regional and domestic schemes to facilitate cross-border payments and the intention to move towards greater European market integration. This shows that European actors are stepping up.
At the same time, most European payment solutions today have a small footprint in physical shops. Their coverage in online shopping is also limited. Therefore, building a common acceptance network will take time and money, also because most industry standards are currently in the hands of foreign companies. It is therefore unclear whether these solutions, on their own, can scale up enough to address Europe’s payment challenges in the long run.
That is why we have always been committed to working with the private sector – to ensure that it can make the best use of the opportunities created by the digital euro.
The digital euro, thanks to its legal tender status, would create a European standard – a common set of rails on which private payment solutions can operate and innovate.[18]
I often compare this to a public rail network. The infrastructure is public, but private companies can use these tracks to reach any destination in Europe and compete on services, quality and innovation.
Thanks to this shared infrastructure, private European payment initiatives would be able to achieve pan-European reach more easily and scale up faster.
Private providers would also be able to integrate the digital euro seamlessly into their existing payment solutions, for example in digital wallets or by co-badging it on physical cards.[19]
At the same time, we aim to minimise additional investment costs for payment service providers by reusing existing infrastructures as much as possible.
Adopting the digital euro Regulation has become increasingly urgent if we are to make use of the synergies between public and private solutions and reduce our dependence on foreign companies.
Importantly, some of the benefits of the digital euro will start to materialise even before its launch. Once the legislation is adopted, the digital euro standards can be finalised and made available to the market. As merchants renew their payment terminals, they can ensure that the new devices are “digital euro-ready”. This will, in turn, allow European payment service providers to begin expanding their reach and the range of use cases they can support.
Delays in the legislative process would risk breaking the momentum of these twin public and private efforts. They would further entrench our dependence on international card schemes and increase our exposure to non-European big tech payment solutions and stablecoins.
Conclusion
Let me conclude.
In October last year European leaders stressed the importance of “swiftly completing legislative work and accelerating other preparatory steps” for the digital euro.[20] Their message was clear: the time to act is now.
In this fast-changing world, let’s show Europeans that we respond to challenges head-on – by protecting our currency and guaranteeing people’s freedom to pay as they choose.
Consumers, merchants and payment service providers all stand to benefit.
 
 
 
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Submarine data cables, carrying 99% of intercontinental internet traffic, are essential for modern life and the European economy. As the EU faces increasing risks to this critical infrastructure, the European Commission is intensifying efforts to enhance its security and resilience. Today, it introduced a new Cable Security Toolbox of risk mitigating measures and a list of Cable Projects of European Interest (CPEIs). It also amended the Connecting Europe Facility (CEF) – Digital Work Programme to allocate €347 million to strategic submarine cable projects, including a €20 million call to enhance Europe’s repair capacities, which opens today.
Today’s announcements are part of the EU Action Plan on Cable Security, aimed at increasing the security and resilience of Europe’s submarine cables, including countering the rise of intentional damage and sabotage.
Cable Security Toolbox and projects of European interest
The toolbox outlines six strategic and four technical and support measures to improve the security of submarine cable infrastructure. It builds on the October 2025 risk assessment, which identified risk scenarios, threats, vulnerabilities and dependencies.
The list of 13 CPEI areas for public funding specifies three five-year stages, up to 2040, to fund projects aimed at strengthening the resilience of submarine cables. CPEI areas will be prioritised in upcoming CEF Digital calls for proposals and will inform planning for possible funding under the next Multi-annual Financial Framework.
These resources—risk assessment, toolbox and CPEIs—were developed by the Commission and Member State representatives within a dedicated Cables Expert Group.
Funding opportunities under Connecting Europe Facility (CEF) Digital
The Commission amended the CEF Digital Work Programme, allocating €347 million to fund strategic submarine cable projects. These calls will support the CPEIs, enhance the EU’s cable repair capacity and equip submarine cables with smart capabilities.
In 2026, two funding calls worth €60 million will support cable repair modules, alongside a separate €20 million call for SMART cable system equipment. These are sensors and monitoring components integrated into submarine telecommunications infrastructure to gather real-time ocean and seismic data. Additionally, there will be two calls for CPEI funding in 2026 and 2027, totalling €267 million.
Supporting submarine cable repairs
Opening today is a €20 million call under CEF Digital to finance adaptable modules for submarine cable repairs. These modules will be stationed at ports or shipyards to swiftly restore submarine cable services.
This marks the first phase of a broader initiative planned for all major sea basins of the European Union, including the Baltic, the Mediterranean and the Atlantic. This pilot will focus on the Baltic Sea due to the rise in submarine cable disruptions in recent years, suggesting these critical infrastructures might be subject to hostile acts.
Calls for proposals will be open only to public entities with an ‘emergency response’ mandate, such as those active in civil protection, national emergency response agencies, coastguards and military navies.
Background
In February 2024, the Commission adopted a Recommendation (EU) 2024/779 on Secure and Resilient Submarine Cable Infrastructures. It established the Submarine Cable Infrastructure Expert Group, involving Member State authorities and the European Agency for Cybersecurity (ENISA).
A year later, Joint Communication on an EU Action Plan on Cable Security outlined measures to protect submarine cables at all stages of resilience. By October 2025, the Cable Expert Group published the EU risk assessment on submarine cable infrastructures, informing today’s EU Cable Security Toolbox of mitigating measures and the CPEIs list.
Under the current CEF Digital multiannual Work Programme (2024-2027), a total €533 million is allocated for submarine cable projects, with €186 million already awarded to 25 projects. From 2021 to 2024, it provided €420 million to 51 backbone cable connectivity projects.
 
 
 
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Frankfurt am Main, 5 February 2026
Good afternoon, the Vice-President and I welcome you to our press conference.
We would like to begin by congratulating Bulgaria on joining the euro area on 1 January 2026. We also warmly welcome Dimitar Radev, the Governor of Българска народна банка (Bulgarian National Bank), to the Governing Council. Membership of the euro area has almost doubled since 1999 and is testimony to the attractiveness of the single currency and the enduring benefits of European integration.
We will now report on the outcome of today’s meeting.
The Governing Council today decided to keep the three key ECB interest rates unchanged. Our updated assessment reconfirms that inflation should stabilise at our two per cent target in the medium term. The economy remains resilient in a challenging global environment. Low unemployment, solid private sector balance sheets, the gradual rollout of public spending on defence and infrastructure and the supportive effects of our past interest rate cuts are underpinning growth. At the same time, the outlook is still uncertain, owing particularly to ongoing global trade policy uncertainty and geopolitical tensions.
We are determined to ensure that inflation stabilises at our two per cent target in the medium term. We will follow a data-dependent and meeting-by-meeting approach to determining the appropriate monetary policy stance. In particular, our interest rate decisions will be based on our assessment of the inflation outlook and the risks surrounding it, in light of the incoming economic and financial data, as well as the dynamics of underlying inflation and the strength of monetary policy transmission. We are not pre-committing to a particular rate path.
The decisions taken today are set out in a press release available on our website.
I will now outline in more detail how we see the economy and inflation developing and will then explain our assessment of financial and monetary conditions.
Economic activity
The economy grew by 0.3 per cent in the fourth quarter of 2025, according to Eurostat’s preliminary flash estimate. Growth has mainly been driven by services, notably in the information and communication sector. Manufacturing has been resilient despite the headwinds from global trade and geopolitical uncertainty. Momentum in construction is picking up, also supported by public investment.
The labour market continues to support incomes, even though demand for labour has cooled further. Unemployment stood at 6.2 per cent in December, after 6.3 per cent in November. Growing labour incomes together with a lower household saving rate should bolster private consumption. Government spending on defence and infrastructure should also contribute to domestic demand. Business investment should strengthen further, and surveys indicate that firms are increasingly investing in new digital technologies. At the same time, the external environment remains challenging, owing to higher tariffs and a stronger euro over the past year.
The Governing Council stresses the urgent need to strengthen the euro area and its economy in the present geopolitical context. Governments should prioritise sustainable public finances, strategic investment and growth-enhancing structural reforms. Unlocking the full potential of the Single Market remains crucial. It is also vital to foster greater capital market integration by completing the savings and investments union and the banking union to an ambitious timetable, and to rapidly adopt the Regulation on the establishment of the digital euro.
Inflation
Inflation declined to 1.7 per cent in January, from 2.0 per cent in December and 2.1 per cent in November. Energy inflation dropped to -4.1 per cent, after -1.9 per cent in December and -0.5 per cent in November, while food price inflation increased to 2.7 per cent, from 2.5 per cent in December and 2.4 per cent in November. Inflation excluding energy and food eased to 2.2 per cent, after 2.3 per cent in December and 2.4 per cent in November. Goods inflation edged up to 0.4 per cent, whereas services inflation declined to 3.2 per cent, from 3.4 per cent in December and 3.5 per cent in November.
Indicators of underlying inflation have changed little over recent months and remain consistent with our two per cent medium-term target. Negotiated wage growth and forward-looking indicators, such as the ECB’s wage tracker and surveys on wage expectations, point to a continued moderation in labour costs. However, the contribution to overall wage growth from payments over and above the negotiated wage component remains uncertain.
Most measures of longer-term inflation expectations continue to stand at around 2 per cent, supporting the stabilisation of inflation around our target.
Risk assessment
The euro area continues to face a volatile global policy environment. A renewed increase in uncertainty could weigh on demand. A deterioration in global financial market sentiment could also dampen demand. Further frictions in international trade could disrupt supply chains, reduce exports and weaken consumption and investment. Geopolitical tensions, in particular Russia’s unjustified war against Ukraine, remain a major source of uncertainty. By contrast, planned defence and infrastructure spending, together with the adoption of productivity-enhancing reforms and the adoption of new technologies by euro area firms, may drive up growth by more than expected, including through positive effects on business and consumer confidence. New trade agreements and a deeper integration of our European Single Market could also boost growth beyond current expectations.
The outlook for inflation continues to be more uncertain than usual on account of the volatile global policy environment. Inflation could turn out to be lower if tariffs reduce demand for euro area exports by more than expected and if countries with overcapacity increase further their exports to the euro area. Moreover, a stronger euro could bring inflation down beyond current expectations. More volatile and risk-averse financial markets could weigh on demand and thereby also lower inflation. By contrast, inflation could turn out to be higher if there were a persistent upward shift in energy prices, or if more fragmented global supply chains pushed up import prices, curtailed the supply of critical raw materials and added to capacity constraints in the euro area economy. If wage growth moderated more slowly, services inflation might come down later than expected. The planned boost in defence and infrastructure spending could also cause inflation to pick up over the medium term. Extreme weather events, and the unfolding climate and nature crises more broadly, could drive up food prices by more than expected.
Financial and monetary conditions
Market rates have come down since our last meeting, while global trade and geopolitical tensions temporarily increased financial market volatility. Bank lending rates for firms ticked up to 3.6 per cent in December, from 3.5 per cent in November, as did the cost of issuing market-based debt. The average interest rate on new mortgages again held steady, at 3.3 per cent in December.
Bank lending to firms grew by 3.0 per cent on a yearly basis in December, after 3.1 per cent in November and 2.9 per cent in October. The issuance of corporate bonds rose by 3.4 per cent in December. According to our latest bank lending survey for the euro area, firms’ demand for credit was up slightly in the fourth quarter, especially to finance inventories and working capital. At the same time, credit standards for business loans tightened again.
Mortgage lending grew by 3.0 per cent, after 2.9 per cent in November and 2.8 per cent in October, in response to still rising demand for loans and an easing of credit standards.
Conclusion
The Governing Council today decided to keep the three key ECB interest rates unchanged. We are determined to ensure that inflation stabilises at our two per cent target in the medium term. We will follow a data-dependent and meeting-by-meeting approach to determining the appropriate monetary policy stance. Our interest rate decisions will be based on our assessment of the inflation outlook and the risks surrounding it, in light of the incoming economic and financial data, as well as the dynamics of underlying inflation and the strength of monetary policy transmission. We are not pre-committing to a particular rate path.
In any case, we stand ready to adjust all of our instruments within our mandate to ensure that inflation stabilises sustainably at our medium-term target and to preserve the smooth functioning of monetary policy transmission.
We are now ready to take your questions.
 
 
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Today, the European Union, the United States and Japan met during the Critical Minerals Ministerial meeting held in Washington, DC in which several EU member states also took part.
The European Union, the United States and Japan are now taking significant steps towards increasing their economic security and national security by jointly enhancing resilience in critical minerals supply chains. They have announced their intention to expedite cooperative efforts for a mutually beneficial Partnership, with two components.
This includes a commitment within the next 30 days to conclude a Memorandum of Understanding between the European Union and the United States aimed at boosting critical minerals supply chain security. The forthcoming Memorandum of Understanding will identify areas of cooperation to stimulate demand and diversify supply for both participants by identifying and supporting projects in mining, refining, processing, and recycling. It will also include discussion of measures to prevent supply chain disruptions, promote research and innovation efforts, and facilitate the exchange of information on stockpiling. In addition, on 27 October 2025, the leaders of the United States and Japan signed a Framework for Securing the Supply of Critical Minerals and Rare Earths through Mining and Processing, covering the abovementioned areas.
Building upon existing international cooperation and initiatives, the European Union, the United States and Japan intend to develop Action Plans and explore a plurilateral trade initiative with like-minded partners on trade in critical minerals. Such a plurilateral trade initiative could include exploring the development of coordinated trade policies and mechanisms, such as border-adjusted price floors, standards-based markets, price gap subsidies, or offtake-agreements.
The Department of State will lead US engagement on the Memorandum of Understanding. The Office of the US Trade Representative will lead US engagement on the Action Plan.
The European Union, the United States and Japan intend to further engage on these aspects, as well as explore additional possibilities for critical minerals resilience and other measures, in relevant international fora, including the G7, and the Minerals Security Partnership or any successor forum.
 
 
 
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2 February 2026

Firms reported a net tightening in bank loan interest rates and in other loan conditions related to both price and non-price factors.
Financing needs rose modestly, accompanied by a small perceived decline in availability.
Inflation expectations were broadly unchanged across horizons, with firms continuing to report upside risks to their long-term inflation outlook.
The use of artificial intelligence is widespread among euro area firms, though most firms use it very infrequently or moderately.

In the most recent round of the Survey on the Access to Finance of Enterprises (SAFE), covering the fourth quarter of 2025, euro area firms reported a net increase in interest rates on bank loans (net 12%, compared with 2% in the previous quarter). A similar increase was observed by both small and medium-sized enterprises (SMEs) and large firms. At the same time, a net 28% of firms (up from 23% in the previous quarter) observed increases in both other financing costs (i.e. charges, fees and commissions) and collateral requirements (net 14%, compared with 16% in the third quarter of 2025) (Chart 1).
In this survey round, firms reported a modest rise in their need for bank loans (net 3%, up from 0% in the third quarter of 2025), accompanied by a small perceived decline in availability (net -2%, compared with -1% in the third quarter). This increased the bank loan financing gap – an index capturing the difference between the need for and the availability of bank loans – to net 3% (up from 1% in the previous quarter). Looking ahead, firms expect the availability of external financing to remain broadly unchanged over the next three months, which was similar to the previous survey round (Chart 2).
Firms continued to perceive the general economic outlook to be the main factor constraining the availability of external financing (net 20%, compared with 19% in the previous survey round) and indicated a slight improvement in banks’ willingness to lend (net 4%, up from 2%). In this survey round, firms reported a somewhat more negative impact of their firm-specific outlook (in terms of sales and profits) on the availability of finance.
Firms reported increasing turnover over the last three months (net 7%, up from 0% in the previous survey round). A net 18% of firms (down from 25% in the previous quarter) remained optimistic about developments in the next quarter. At the same time, firms continued to see a deterioration in their profits, with a net 10% of firms reporting lower profits (down from 13%). In this survey round, a net 6% of firms (down from 8%) reported increased investments over the past three months, which was close to their earlier expectations. Looking ahead, firms were marginally more optimistic about future investment than they had been in the preceding quarter.
Firms’ expected their selling prices to rise by 2.9% on average over the next 12 months (similar to the previous survey round), while the corresponding figure for wages was 3.1% (up from 3% in the previous round) (Chart 3). At the same time, firms signalled a smaller expected increase in non-labour input costs (3.6% on average, down from 3.8% in the previous round).
Firms’ inflation expectations were broadly unchanged over all horizons (Chart 4). Median expectations for annual inflation one year ahead were 2.6% (up from 2.5% in the previous round), while for both the three and five-year horizons they were 3.0% (similar to the previous survey round). For the five-year horizon, most firms continued to indicate that risks to the inflation outlook were tilted to the upside (net 56%, up from 53% in the previous round).
In this survey round, firms were asked about their use of artificial intelligence (AI). Results show that 27% of euro area firms do not use AI, 33% use it very infrequently, 31% moderately and 7% significantly (Chart 5). SMEs are more likely than large firms not to use AI (35% versus 13%) and are also less likely to experiment with it or use it moderately. However, the share of firms making significant use of AI is similar for SMEs and large firms, indicating that AI use is also spreading among a core of smaller firms.
The report published today presents the main results of the 37thround of the SAFE survey for the euro area. The survey was conducted between 19 November and 15 December 2025. In this survey round, firms were asked about economic and financing developments over the period between October and December 2025. Additionally, firms reported their expectations for euro area inflation, selling prices and other costs. The sample comprised 5,067 firms in the euro area, of which 4,684 (92%) had fewer than 250 employees.
Notes

The report on this SAFE survey round, together with the questionnaire and methodological information, is available on the ECB’s website.
Detailed data series for the individual euro area countries and aggregate euro area results are available on the ECB Data Portal.

Chart 1
Changes in the terms and conditions of bank financing for euro area firms

(net percentages of respondents)

Base: Firms that had applied for bank loans (including subsidised bank loans), credit lines, or bank or credit card overdrafts. The figures refer to pilot 2 and rounds 30 to 37 of the survey (October-December 2023 to October-December 2025).
Notes: Net percentages are the difference between the percentage of firms reporting an increase for a given factor and the percentage reporting a decrease. The data included in the chart refer to Question 10 of the survey.

Chart 2
Changes in euro area firms’ financing needs and the availability of bank loans

(net percentages of respondents)

Base: Firms for which the instrument in question is relevant (i.e. they have used it or have considered using it). Respondents replying “not applicable” or “don’t know” are excluded. The figures refer to pilot 2 and rounds 30 to 37 of the survey (October-December 2023 to October-December 2025).
Notes: The financing gap indicator combines both financing needs and the availability of bank loans at firm level. The indicator of the perceived change in the financing gap takes a value of 1 (-1) if the need increases (decreases) and availability decreases (increases). If firms perceive only a one-sided increase (decrease) in the financing gap, the variable is assigned a value of 0.5 (-0.5). A positive value for the indicator points to a widening of the financing gap. Values are multiplied by 100 to obtain weighted net balances in percentages. The data included in the chart refer to Question 5 and Question 9 of the survey.

Chart 3
Expectations for selling prices, wages, input costs and employees one year ahead, by size class

(percentage changes over the next 12 months)

Base: All firms. The figures refer to pilot 2 and rounds 30 to 37 (October-December 2023 to October-December 2025) of the survey, with firms’ replies collected in the last month of the respective survey waves.
Notes: Weighted average euro area firms’ expectations of changes in selling prices, wages of current employees, non-labour input costs and number of employees for the next 12 months using survey weights. The statistics are computed after trimming the data at the country-specific 1st and 99th percentiles. The data included in the chart refer to Question 34 of the survey.

Chart 4
Firms’ median expectations for euro area inflation by size class

(annual percentages)

Base: All firms. The figures refer to pilot 2 and rounds 30 to 37 (October-December 2023 to October-December 2025) of the survey, with firms’ replies collected in the last month of the respective survey waves.
Notes: Survey-weighted median of euro area firms’ expectations for euro area inflation in one year, three years and five years, calculated using survey weights. The statistics are computed after trimming the data at the country-specific 1st and 99th percentiles. The data included in the chart refer to Question 31 of the survey.

Chart 5
Use of AI by firm size

(percentages of respondents)

Base: All firms. The figures refer to round 37 of the survey (October-December 2025).
Notes: The chart shows the weighted share of firms by the intensity of AI use for all firms, SMEs and large firms. The data included in the chart refer to Question QA1_2025Q4 of the survey.

 
 
 
 
Compliments of the European Central Bank The post ECB | Survey on the Access to Finance of Enterprises: Lending Conditions Tightened first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

Financing for energy security rose to a record in 2025, with €11.6 billion invested in European grids, and mobilising around a third of the total energy transition investment
Biggest ever financing programme for startups, scale-ups and tech infrastructure consolidates EIB Group’s position as cornerstone of EU’s venture capital ecosystem
Scope of security and defence investments expanded, financing quadruples to reach nearly 5% of EIB Group’s annual EU business, in milestone year of historic decisions
Financing for housing innovation, renovation and new construction rose by 50%, while more than half of EIB Group’s EU financing went to projects in cohesion regions

The European Investment Bank (EIB) Group is deploying its full firepower to support European competitiveness, security and strategic autonomy, with a record €100 billion in annual financing. The results from the EIB Group’s activity in 2025 show historic highs in new investment for the green and digital transitions, for European security and defence, for shared priorities including housing, and for reinforcing win-win partnerships and alliances in Ukraine, accession countries and across the globe.
“Europe is a superpower, and we must punch our weight and believe in our capabilities,” said EIB Group President Nadia Calviño. “The EIB Group is making a difference. Investing in shared prosperity, security, strategic autonomy and European values, so Europe delivers on its promises to citizens and partners.”
Transition to the future
Almost 60% of EIB Group’s total financing in 2025 went to green projects, from large energy grids and interconnectors to the deployment of storage and renewables, clean technologies for the decarbonisation of heavy industry, as well as adaptation investment, such as water infrastructure, reinforcing the resilience of economies and societies to climate change and its impact.
A record €11.6 billion was devoted to grids and storage projects, supporting the security of the power supply. It is estimated that the financing signed last year will help construct or upgrade 56,000 km of power lines, from the landmark Bay of Biscay interconnector between the Iberian Peninsula and France, through an underwater cable connecting two regions in central Italy, to local grids and municipal power infrastructure in Germany.
EIB Group financing backed one fifth of all newly installed solar capacity, one in three new onshore wind projects, as well as the vast majority of all offshore wind projects in 2025. Tailored financing products supported the EU’s wind and grids manufacturing industries, while record high investment volumes in energy efficiency are expected to lower bills for small and medium-sized companies and households. EIB Group financing supported around one third of the total energy transition investment in the EU last year.
In addition to clean technologies, the EIB Group is supporting homegrown innovation in health and biotech, artificial intelligence and other disruptive technologies, digital infrastructures and critical raw materials. With the rollout of TechEU last year, the biggest ever financing programme for innovation, the EIB Group plans to mobilise at least €250 billion in investment by 2027, ensuring that ideas, technologies and innovative companies born in the EU, can stay, grow and thrive here in the EU. The financing deployed last year alone is estimated to mobilize more than €100 billion in investment, from AI-powered 6G networks, to semiconductors manufacturing.
As cornerstone financier of innovation, the European Investment Fund (EIF) – EIB’s risk-finance subsidiary – delivered close to €16 billion in guarantees and equity finance for small businesses and startups across the EU. The EIF is estimated to have contributed almost a quarter of all venture capital raised by European funds last year.  In the months ahead, it will expand its European Tech Champions Initiative, building on the huge success of the first phase, which has already anchored the creation of 12 venture capital mega funds in Europe, and the scale-up of 35 startups – including nine unicorns.
Security and defence
Responding to the new geopolitical landscape, the EIB Group significantly expanded the scope of its activities in the area of security and defence and into projects dedicated to military use. Security and defence investments quadrupled to more than €4 billion, close to 5% of the EIB Group’s EU financing.
Thanks to this step change, the EIB Group plays a leading role in safeguarding peace and security for EU citizens, with flagship projects ranging from military camps and maintenance facilities to research and development in advanced radar systems and avionics, and from sensors essential for the protection of Europe’s seabed and underwater assets to cybersecurity infrastructure and space capabilities.
Moreover, the EIB Group has been a pathfinder for EU’s financial industry, catalysing support for companies supporting Europe’s deterrence capabilities. Through intermediated lending agreements signed with commercial banks in Germany, France, Spain, Greece, and Austria, the EIB Group is facilitating access to financing for small and medium-sized companies in the supply chain of Europe’s large defence contractors, while the EIF has been nurturing, as anchor investor, the development of a venture capital ecosystem investing in defence firms with a pan-European approach.
Underpinning Europe’s economic model and values
The EIB Group is focusing on investments that underpin the European economic model and values. Investments for cohesion rose to a record high, with more than 50% of the Group’s EU investment going to projects in Europe’s less developed regions.
The EIB Group’s Affordable and Sustainable Housing Plan (available in EN, FR and DE) launched in 2025 alongside the European Commission, raised EIB Group financing for innovation, renovation and new buildings to more than €5 billion, up nearly 50% on an annual basis, with a further increase planned for 2026. From student residences in Greece, to social housing in Belgium, from hospitals and health facilities in Spain, to primary schools in France, financing for social infrastructure whose impact is felt daily by EU citizens is a key priority for the EIB Group.
Financing for agriculture and the bioeconomy also rose to a record high of nearly €8 billion, strengthening a vital sector for Europe’s economy and food security, supporting rural communities, and creating viable futures for young and new farmers, who face financing barriers
Building bridges and win-win partnerships around the world
The EIB Group also deployed more than €9 billion for its EIB Global operations, building win-win global partnerships anchoring Europe as a trusted partner in a changing world, improving living conditions in many areas. For example, in 2025, the EIB Group financing for water projects rose to a record €5 billion globally.
Financing for Ukraine rose to a new record and now exceeds €4 billion since the start of Russia’s invasion, with a new project signed or inaugurated every other week, from schools, hospitals and community facilities to district heating and power supply.
An EIB Global strategic orientation was adopted in 2025, fully aligning our operations with EU policy priorities. The EIB is the world’s largest public financier in water and a global leader investing in health, clean energy, and transport. Investments in private sector support and entrepreneurship brings opportunities for young people and women in emerging economies.
Doing more, doing better
In parallel to increasing the volume of its activities, the EIB Group has streamlined its internal processes, with the goal of accelerating investment decisions and cutting time to market. One-stop-shops have been introduced for clients, with investment checkers and reliance on established regulatory frameworks, designed to help Europe’s entrepreneurs get the right financing, at the right time, and the right scale to make a difference.
The full activity report, including a list of flagship project examples can be found here
A key figures summary for 2025 can be found here: [EN] 
 
 
 
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Today, the 27 EU member states formally adopted the regulation on phasing out Russian imports of both pipeline gas and liquified natural gas (LNG) into the EU. The new rules also include measures on effective monitoring and diversification of energy supply.

The regulation is a key milestone in delivering the REPowerEU objective of ending the EU’s reliance on Russian energy.
“As of today, the EU energy market will be stronger, more resilient and more diversified. We are breaking away from detrimental reliance on Russian gas and taking a major step, in a spirit of solidarity and cooperation, towards an autonomous Energy Union.” – Michael Damianos, Minister for Energy, Commerce and Industry of the Republic of Cyprus
Stepwise ban, strict monitoring and diversification
According to the regulation, importing Russian pipeline gas and LNG into the EU will beprohibited. The ban will start to apply six weeks after the regulation enters into force. Existing contracts will have a transition period. This stepwise approach will limit the impact on prices and markets. A full ban will take effect for LNG imports from the beginning of 2027 and for pipeline gas imports from autumn 2027.
Before authorising entry of gas imports into the Union, EU countries will verify the country where gas was produced.
Non-compliance with the new rules may result in maximum penalties of at least € 2,5 million for individuals and at least € 40 million for companies, at least 3,5 % the company’s total worldwide annual turnover, or 300 % of the estimated transaction turnover.
By 1 March 2026, EU countries must prepare national plans to diversify gas supplies and identify potential challenges in replacing Russian gas. To that end, companies will be required to notify authorities and the Commission of any remaining Russian gas contracts. EU countries still importing Russian oil will also have to submit diversification plans.
Security of supply in emergencies
In the event of a declared emergency, and if security of supply is seriously threatened in one or more EU countries, the Commission may suspend the import ban for up to four weeks.
Next steps
The regulation will now be published in the Official Journal of the EU. It will enter into force one day after publication and will apply directly in all EU countries.
The Commission also plans to propose legislation to phase out Russian oil imports by the end of 2027.
Background
Following Russia’s war of aggression against Ukraine and the use of energy as a weapon, EU leaders agreed, in the Versailles Declaration of March 2022, to phase out dependence on Russian fossil fuels as soon as possible.
Consequently, gas and oil imports from Russia to the EU have both decreased significantly in recent years. However, while imports of oil have dropped to below 3% in 2025 as a result of the current sanctions regime, Russian gas still accounts for an estimated 13% of EU imports in 2025, worth over €15 billion annually. This leaves the EU exposed to significant risks in terms of its trade and energy security.

 
 
Compliments of the European Council The post European Council | Russian Gas Imports: Council Gives Final Greenlight to a Stepwise Ban first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.