Eurogroup President and Minister for Finance of Ireland, Paschal Donohoe, will represent the euro area at the Annual Meetings of the IMF and World Bank Group in Washington, DC, this week.
As President of the Eurogroup, Minister Donohoe will participate in the G7 Finance Ministers and Central Bank Governors’ meeting as well as in a range of IMF meetings. The Annual Meetings provide an opportunity for Finance Ministers and Central Bank Governors from around the world along with leading figures from the IMF and World Bank to meet and discuss global economic and development challenges, including the IMF’s assessment of the global economic outlook. The Eurogroup President will also participate in a series of media engagements to highlight the European economic and financial policy agenda.

The IMF and World Bank Group celebrated their 80-year anniversary last year, and now, maybe more than any time in recent memory, they are needed to help address the global challenges that we face. Multilateralism, particularly in the face of persistent and ongoing global conflicts and recent economic turbulence, is key for securing effective and resilient outcomes. During my visit, I look forward to a series of constructive engagements with Ministerial colleagues and officials at the IMF and the World Bank on how best to address these economic challenges and further our shared goals.
For more information, please contact:
• Kornelia Kozovska, Spokesperson for the Eurogroup President

 
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By: Pierre-Olivier Gourinchas
Dialing down uncertainty, reducing vulnerabilities, and investing in innovation can help deliver durable economic gains
In April, the United States shook global trade norms by announcing sweeping tariffs. Given the complexity and fluidity of the moment, our April report offered a range of estimates for the growth downgrade, from modest to significant, depending on the ultimate severity of the trade shock.
Six months on, where are we? The good news is that the growth downgrade is at the modest end of the range. The reasons are clear. The United States negotiated trade deals with various countries and provided multiple exemptions. Most countries refrained from retaliation, keeping instead the trading system largely open. The private sector also proved agile, front-loading imports and speedily re-routing supply chains.
As a result, the increase in tariffs and its effect has been smaller than expected so far. We now project global growth at 3.2 percent this year and 3.1 percent next year, a cumulative downgrade of 0.2 percentage point since our forecast a year earlier.

Should we conclude that the shock triggered by the tariff surge had no effect on global growth? That would be both premature and incorrect.
Premature because the US statutory effective tariff rate remains high and trade tensions continue to flare up with no guarantee yet on lasting trade agreements. Past experience suggests that it may take a long time before the full picture emerges. So far, the incidence of the tariffs seems to fall squarely on US importers, with import prices (excluding tariffs) mostly unchanged, and limited retail price increases. But they may still pass costs onto US consumers, as some have started to do, and trade may reroute permanently, leading to global efficiency losses.
Incorrect because other economic forces besides trade policy are simultaneously at play. In the United States, tighter immigration policies are shrinking the foreign-born labor supply—another negative supply shock on top of that from tariffs. So far, this has been offset by cooling labor demand, keeping unemployment steady. Financial conditions remain loose, the dollar has softened in the first half of the year, and AI-driven investment is booming. These demand-side forces are supporting activity, while adding further to the price pressures from the negative supply shocks.
In tariff-hit economies, other dynamics are helping to cushion the blow. China is weathering higher tariffs with a weaker real exchange rate, redirected exports to Asia and Europe, and fiscal support. Germany’s fiscal expansion is lifting euro area growth. Emerging market and developing economies benefitted from easier global financial conditions thanks in part to the depreciation of the US dollar, and they continue to demonstrate strong resilience reflecting in part hard-earned gains from stronger policy frameworks.
Still, despite multiple offsetting drivers, the tariff shock is further dimming already lackluster growth prospects. We expect a slowdown in the second half of this year, with only a partial recovery in 2026, and, compared to last October’s projections, inflation is expected to be persistently higher. Even in the United States, growth is weaker and inflation higher than we projected last year—hallmarks of a negative supply shock.

Overall, despite a steady first half, the outlook remains fragile, and risks remain tilted to the downside. The main risk is that tariffs may increase further from renewed and unresolved trade tensions, which, coupled with supply chain disruptions, could lower global output by 0.3 percent next year. Apart from this, four simmering downside risks are especially worrying:
1. The AI surge, promise or peril?
Today’s surging investment in artificial intelligence echoes the dot-com boom of the late 1990s. Optimism is fueling tech investment, lifting stock valuations, and boosting consumption via capital gains. This could push the real neutral interest rate upwards. Continued exuberance may require tighter monetary policy just as in the late 1990s.
But there is also a flip side. Markets could reprice sharply, especially if AI fails to justify lofty profit expectations. That would dent wealth and curb consumption, with adverse effects potentially reverberating through the financial system.

2. China’s structural struggles
The outlook remains worrisome in China, where the property sector is still on shaky footing four years after its property bubble burst. Financial stability risks are elevated and rising as real estate investment continues to contract, overall credit demand remains weak, and the economy teeters on the edge of a debt-deflation trap. Manufacturing exports have buoyed growth, but it is hard to see how this could last.
Even the pivot toward investment in new strategic sectors such as electric vehicles and solar panels through the use of large-scale subsidies, while boosting productivity in these sectors, may have contributed to a significant overall misallocation of resources and lackluster aggregate productivity gains. Across different countries, industrial policy can help boost production in targeted sectors but should be handled with care as it often brings significant fiscal, hidden costs, and potential spillovers.

3. Mounting fiscal pressures
Many governments, including some major advanced economies, face growing fiscal strains and have achieved only limited progress in rebuilding fiscal space. Without immediate action, slower economic growth, higher real interest rates, coupled with elevated debt and new spending needs—for defense, economic security, climate—will further tighten the fiscal vise. Low-income countries are especially vulnerable, despite efforts to improve their primary balances, as they face the prospect of significantly reduced aid flows. Many poorer countries remain scarred by the shocks of the last five years. Limited opportunities could fuel social unrest, particularly among unemployed youth.
4. Institutional credibility at risk
As fiscal constraints become more binding, many institutions face rising political pressure. For central banks, pressures to ease monetary policy, whether to support the economy at the expense of price stability, or to lower debt servicing costs, always backfire. While it may lower real interest rates in the short term, inflation and inflation expectations ultimately increase more than desirable. Trust in central banks helps anchor inflation expectations—especially amid shocks, as seen during the recent cost-of-living crisis. As independence erodes, decades of hard-won credibility will vanish, imperiling macroeconomic and financial stability.

The right policies can help
While downside risks dominate, a few important developments could quickly brighten the outlook. First, resolving policy uncertainty would provide a significant lift to the global economy. Clearer and more stable bilateral and multilateral trade agreements can raise global output by 0.4 percent in the very near term. A return to low tariffs that prevailed before January 2025 based on these agreements adds even more upside, about 0.3 percent. Second, beyond its effects on investment, AI could raise total factor productivity. Under modest assumptions, the combined effects of lower uncertainty, lower tariffs, and AI could raise global output by about 1 percent in the near term.
This underscores how policies that help restore confidence and predictability can improve our growth prospects. For trade policy, the objective should be to reduce uncertainty and set clear, transparent rules that reflect the changing nature of trade relations, looking to deepen trade ties where possible. That most countries have so far avoided retaliation and sought to forge better trade deals offers a glimmer of hope.
This needs to be paired with improved domestic policies which will also go a long way in reducing global imbalances. Where needed, fiscal policy should aim to reduce vulnerabilities. This should be done gradually and credibly, but governments must not delay further. Improving the efficiency of public spending is an important way to encourage private investment. Monetary policy should remain independent, transparent and tailored with a key objective to maintain price stability.
Beyond short-term stability, we must invest more in the future. Governments should empower private entrepreneurs to innovate and thrive. Productivity fuels sustainable growth, and the progress of AI, with the right guardrails, can help lift medium-term prospects. While sectoral industrial policies are increasingly tempting policymakers, policies to support education, public research, infrastructure, governance, financial stability, and smart regulation that balances innovation with risk management offer a better and less costly path.
A pragmatic and adaptive multilateral system that fosters cooperation can help us meet these challenges.
—This blog is based on Chapter 1 of the October 2025 World Economic Outlook, “Global Economy in Flux, Prospects Remain Dim.”
 
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By: Era Dabla-Norris, Davide Furceri, Zsuzsa Munkacsi, Galen Sher
Spending more efficiently and reallocating public funds toward investment and innovation can be a powerful growth strategy
Over the past two decades, Rwanda achieved remarkable progress. Nearly every household now has access to mobile phones and primary education. More than half the population has electricity, and one in five has clean drinking water and sanitation services. Rwandans consume three times more electricity and live 20 years longer.
These gains came from relatively modest increases in investment, education, and health spending from $150 to $420 per person—which is even below the sub-Saharan African average. What made the difference in Rwanda was more efficient public spending. This approach is an answer to fiscal pressures stemming from slow growth, rising debt, aging populations, and growing demands for defense. The key is to make every penny of taxpayer resources count.
Our new analysis of 174 economies in the latest Fiscal Monitor shows that governments could gain one-third more value from their spending, on average, by adopting best practices. By spending more efficiently and better allocating existing resources, emerging markets and developing economies can increase output by 11 percent, and advanced economies by 4 percent, over the long term. Spending smarter is more than a fiscal tactic—it’s a growth strategy.

What spending smarter means
First, it means allocating existing spending better. In most countries, public investment, which can be growth-enhancing, has declined by 2 percentage points of total expenditure over the past two decades. Another such area is education, where public spending has remained modest at about 11 percent of total spending. At the same time, many countries are faced with high public wage bills, which account on average for a quarter of total expenditure.
Second, it means improving the “technical efficiency of spending”—the maximum achievable output given a fixed level of public expenditure. To measure this, we compare observed outcomes to best-practice management, technology, and institutional arrangements. For example, Canada spends about $2,500 per person annually on education—roughly $300 less than other advanced economies. Yet adults complete an average of 13.7 years of schooling, making Canada the second best in the world, behind Germany.
Significant economic gains
Smart public spending can substantially boost long-term growth in both advanced and developing economies.
Our analysis shows that shifting 1 percent of gross domestic product from lower‑impact government consumption into infrastructure investment raises output by about 1.5 percent in advanced economies and 3.5 percent in emerging market and developing economies over about 25 years. Redirecting the same amount toward human capital investment, for example by upgrading education systems, can yield around 3 to 6 percent, respectively, in those two country groups. Importantly, this reallocation of spending can also reduce income inequality.
Spending more efficiently amplifies these long-term gains. Improving investment efficiency by 10 percentage points can further boost output gains by 1.4 percent. The faster countries close these gaps, the greater and quicker the payoffs.
Complementary policies also matter. In advanced economies, pairing research and development with human capital investment enhances productivity. In emerging and developing economies, combining infrastructure spending with education spending balances near‑term and longer‑term gains: physical capital boosts output quickly, while human capital builds future productivity.

Making reforms work
Spending reforms are challenging. Countries often establish minimum legal levels of funding for education, health, and social protection. Public salaries and pensions are also hard to change. Globally, about one-third of spending is effectively “locked in,” with advanced economies facing the highest rigidity.
But there are good examples of how to move forward. Estonia and Sweden reduced rigidity by actively using multiyear fiscal planning, which requires new spending to be offset in future years. They also linked budget allocations more closely to past performance. This strategic approach to spending reforms is more effective than across-the-board cuts, which can disrupt essential services and reduce efficiency.
Combating corruption, strengthening the rule of law, and increasing budget transparency could also increase efficiency. Competitive procurement processes, improved management of public investment, and digitalization of public finances help too. Togo, for example, increased its investment efficiency by 5 percentage points after introducing cost-benefit analyses for all projects and multiyear planning in 2016.
Linking retirement ages to life expectancy, or emphasizing disease prevention to curb future health costs, can secure long-term sustainability of social spending. Aligning public compensation with market benchmarks and strengthening payroll controls are also key—especially in developing economies where public sector wages often exceed private sector ones by 10 percent or more.
Finally, spending reviews with clear objectives and links to budget decisions help governments identify savings and increase impact. In the Slovak Republic, such reviews uncovered potential savings of 7 percent of public expenditure.
The bottom line is this: by stepping up spending efficiency and better channeling existing resources, countries can strengthen public finances, build resilience, and increase their long-term economic growth.
 
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The European labour market remains resilient, with low unemployment levels, despite a decline in employment growth, according to the European Commission’s latest report. In 2024, job growth decreased to 0.8%, compared to 1.2% in 2023, as a result of economic pressure and geopolitical instability. Nevertheless, the unemployment rate in Europe remains near its record low.
Despite welcomed progress over the last decade which saw certain sectors experience significant rises in pay, one in five workers remain in low-paying jobs. In 2024, wages rose by 2.7%; they are expected to exceed pre-pandemic levels in most Member States by the end of the year. The report highlighted that measures such as increased minimum wages can support low-wage earners with their cost of living.
The report emphasises the need for enhanced initiatives to improve productivity and job quality, which are essential for maintaining high wages and competitiveness.
EU initiatives such as the Minimum Wage Directive, the Competitiveness Compass and the forthcoming Quality Jobs Roadmap aim to promote fair income, skills development and innovation-led growth.
“Europe’s social and employment model is strong and adaptable. This report shows welcomed progress in wages, but we must not be complacent – we need to do more to increase the purchasing power of workers to help tackle the cost of living crisis. The important role of minimum wages,point to concrete measures that can benefit workers, employers and the wider economy. We must continue protecting and investing in people – this helps build a resilient Europe where everyone in society can benefit from economic progress” said Executive Vice-President for Social Rights and Skills, Quality Jobs and Preparedness Roxana Mînzatu.
 
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The FSB’s 2024 AI report identified several vulnerabilities, including third-party dependencies, market correlations, cyber risks, and challenges in model risk and governance, which may have implications for financial stability

Since the FSB’s 2024 report on the financial stability implications of artificial intelligence (AI), there have been significant developments in the AI ecosystem. These include advancements in AI models, new companies offering more flexible options, more competition in hardware, and global technology providers controlling more parts of the AI supply chain. These developments underscore the importance of robust monitoring efforts and fostering collaboration to address potential vulnerabilities to financial stability effectively. Such efforts are essential to fully harness the potential benefits of AI, including enhanced efficiency, improved regulatory compliance, advanced data analytics, and the creation of more personalised financial products.
The report examines the monitoring approaches currently used by member jurisdictions. It outlines key considerations and potential indicators for tracking AI adoption and associated vulnerabilities. It also includes a case study focusing on monitoring AI-related third-party dependencies and service provider concentration. The report provides high-level considerations to enhance monitoring and address data gaps.

View full report here.
 
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By Agostino Consolo, António Dias da Silva, Maarten Dossche and Marco Weißler
Do European workers see US tariff hikes as a threat to their job security? According to an ECB survey, while most workers are fairly relaxed, those in export-oriented sectors and those with lower incomes are more worried about their jobs than before the tariff increase.

Trade tariffs between the euro area and the United States increased significantly this year.[1] These tariffs increase the price of goods produced in Europe for customers in the United States. They are likely to reduce demand for European goods and prompt some firms on our side of the Atlantic to scale down their operations and workforce. This means that trade tensions could become a job killer for the euro area.
The ECB Consumer Expectations Survey asked all employed respondents in July how the recent US trade tariff announcements have affected the likelihood that they would lose their current job. This blog post examines how workers perceive the impact of tariff increases on their job security. The findings are valuable information for our understanding of the labour market, and ultimately also household spending. The lower the perceived job security, the greater the likelihood that workers will put money aside and reduce their consumption.[2]
Most workers are not more worried than before
Tariffs work like taxes by increasing the prices of imported goods. This applies both to goods used by US firms for their production, such as car parts, and the goods consumers buy directly, such as pharmaceuticals. Tariffs therefore make products from outside the United States more expensive and less competitive on the US market. As a result, firms and consumers might switch to other producers and demand fewer European goods (see also this edition of The ECB Blog). European firms that export a considerable amount of their goods to the United States might in turn then decide to reduce their workforce. In this way, tariffs can affect the job security of European workers.
Despite these potential risks, most European workers aren’t too worried. On average, most do not consider their job stability to be affected by US tariffs (see Chart 1). We asked them: “Considering the sector you work in, how have the US tariff announcements affected the chance that you will lose your job?” In fact, 85% of all workers report unchanged or even lower job loss expectations following the increase in US tariffs. This might be because their employers would not be directly affected by a lower demand from US consumers. However, the picture is different for about 15% of workers. This group does perceive a higher probability of job loss, with 3% even stating that the chance of losing their jobs had increased a lot.

Chart 1
Expectations of job loss following the US tariff announcements

(percentages)

Source: ECB Consumer Expectations Survey (CES).
Note: Workers were asked the following question: “Considering the sector you currently work in and your current occupation, how have the recent US trade tariff announcements affected the percentage chance that you will lose your current job?”.

Workers in export-oriented sectors are more worried
Workers in countries and sectors that export more to the United States perceive a higher job risk. However, firms with direct US business relations are less prominent than one might naturally assume. According to European Commission calculations the share of firms and jobs directly linked to US exports ranges from just above 1% in Greece to 6.7% in Ireland (see Chart 2). We compare this to the net percentage of workers perceiving an increase in their job loss expectations relative to workers perceiving a decrease.[3] Unsurprisingly, the share of workers more afraid of job loss is higher in countries in which the workforce is more exposed to US exports, such as Ireland.

Chart 2
Share of jobs exposed to US exports and share of workers expecting a higher job loss risk by country

(percentages and net percentages)

Sources: ECB Consumer Expectations Survey (CES) and Quarterly review of employment and social development in Europe (European Commission).
Notes: Workers were asked the following question: “Considering the sector you currently work in and your current occupation, how have the recent US trade tariff announcements affected the percentage chance that you will lose your current job?”. Net percentages are a weighted difference of the share of workers replying that they expect their job loss probability to “increase a lot/little” and those who expect it to “decrease a lot/little”. The share of jobs exposed to US exports is estimated based on the available data in the European Commission’s publication.

Taking an even closer look, we see that workers in more trade-oriented and cyclical sectors – currently under pressure of other shocks such as high energy prices – are more likely to perceive an increasing risk of job loss following the increase in US tariffs. Specifically, workers in industry, construction or trade feel more negatively affected by those tariffs (see Chart 3). These sectors are either more reliant on US exports or generally more prone to upswings and downswings. By contrast, workers in the public or health sectors do not usually sell their services to US customers. Demand for their services is also largely independent of overall economic conditions. Accordingly, the CES results show that workers in these sectors are much less concerned about their jobs following the tariff hikes. Workers in the financial services and ICT sectors are also more exposed to US tariffs and report higher job fears. This is especially the case for workers in Ireland and the Netherlands, which host the European headquarters for many US firms and are very open economies.[4] This means that workers in these countries are more vulnerable to stricter trade policies.

Chart 3
Change in job loss expectations in response to US tariffs by sector

(net percentages)

Source: ECB Consumer Expectations Survey (CES).
Notes: Workers were asked the following question: “Considering the sector you currently work in and your current occupation, how have the recent US trade tariff announcements affected the percentage chance that you will lose your current job?” Net percentages are a weighted difference of the share of workers replying that they expect their job loss probability to “increase a lot/little” and those who expect it to “decrease a lot/little”.

Additionally, low-income workers feel more at risk than their peers – especially in goods producing sectors. This is mostly due to their stronger exposure to the manufacturing sector, where tariffs have a more negative impact. However, deteriorating job prospects can also worsen the economic outlook for others, as workers who expect to lose their jobs reduce their spending as a precaution. We can observe this in the euro area: in particular, low-income households have reduced their spending on discretionary goods in expectation of a worsening economic situation and higher prices (see this recent ECB Economic Bulletin box). This may lead to lower demand and further worsen the labour market situation – including for firms and workers not directly affected by US tariffs.

Chart 4
Change in job loss expectations in response to US tariffs by income and sector

(net percentages)

Source: ECB Consumer Expectations Survey (CES).
Notes: Workers were asked the following question: “Considering the sector you currently work in and your current occupation, how have the recent US trade tariff announcements affected the percentage chance that you will lose your current job?” Net percentages are a weighted difference of the share of workers replying that they expected their job loss probability to “increase a lot/little” and those who expect it to “decrease a lot/little”. Income is measured in quintiles.

Workers generally perceive that the sharp increase in tariffs on euro area exports to the United States is unlikely to affect their jobs. This seems reasonable, since most jobs are not directly exposed to US exports, and firms have other options for coping with tariff hikes beyond cutting employment. Nonetheless, some workers in more exposed sectors reported an increase in their job loss expectations. This matters when it comes to assessing the broader economic consequences of tariffs. Past research shows that workers who expect to lose their jobs are more likely to actually lose them later. Hence, while the direct impact of US tariffs on jobs appears to be limited, their impact on some workers can be stronger and might add further drag to firm and consumer confidence.
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?

On 27 July 2025 the European Union and the US agreed on a new tariff ceiling of 15%. While for many goods higher tariff levels were announced in early April, the new ceiling is much higher than the average tariffs that prevailed previously. As the survey fieldwork largely took place before the announcement of the agreement at the end of July, repeating this question in the future would allow us to see if workers have changed their assessment since.
Dias da Silva, A., Rusinova, D. and Weissler, M. (2025), Consumption effects of job loss expectations: new evidence for the euro area. European Economic Review 179.
Workers replying that they expect their job loss probability to “increase/decrease a little” are weighted by 0.5, while those replying that they expect their job loss probability to “increase/decrease a lot” are weighted by 1.
ICC Open Market Index 2017

 
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From today, sending money across the euro area will be faster and safer than ever. Thanks to new EU rules on instant payments, people and businesses can now transfer money in euro within seconds, anytime – day or night, weekdays or weekends – whether within their own country or across the euro area.
Since January 2025, payment service providers (PSPs) in the euro area are obliged to offer their clients the possibility to receive euro instant payments. As of today, PSPs are also obliged to offer their clients the service of sending instant payments in euro and, in order to combat payment fraud in euro credit transfers, the service of payee verification (VoP). This makes instant payments more widely available, safer, and more affordable for everyone across the euro area.
Instant payments will boost Europe’s economy and bring major benefits for citizens and companies. For citizens, money is available immediately, making it far easier to deal with emergencies or splitting bills in social settings. For companies, cash flow management will be improved, as will customer service: by providing an additional payment method to customers, they will save time and reduce costs.
What changes: 
• Money moves instantly: Transfers in euro will no longer take days – they will reach the recipient’s account in seconds, at all times – nights, weekends and holidays included.
• Same price as regular transfers: Banks and other payment service providers must not charge more for an instant payment than for a standard credit transfer.
• Stronger protection against fraud and errors: Before a payment is made, providers must verify whether the name of payee (or recipient) matches the IBAN provided, helping people avoid mistakes and scams. This service shall be provided free of charge to the payer.
• Lower costs to process payments: New rules also enable payment and e-money institutions to directly participate in payment systems, so they can provide their payment services, including instant payments, more efficiently.
Next steps
From January 2027, payment service providers outside the euro area will also be required to allow their clients to send and receive instant payments in euro and verify the beneficiary.
The Commission will closely monitor how charges for instant payments evolve and whether there are any other outstanding obstacles to the availability and use of instant payments, and will report to the EU co-legislators to ensure that they remain affordable and accessible. 
Background
The Instant Payments Regulation (March 2024) updates the 2012 rules on euro credit transfers to reflect technological progress and the needs of citizens and businesses today.
The rules have been rolled out gradually to ensure a smooth transition for payment service providers. Since 9 January 2025, PSPs in the euro area are prohibited from charging higher fees for instant payments than those applicable to regular transfers. Additionally, providers that do not yet offer instant payments in euro have had to make it possible for their clients to receive them.
 
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BRUSSELS, October 8, 2025 – The European Commission, in line with its Global Gateway investment strategy, and the World Bank Group are deepening their strategic partnership to drive a new generation of connectivity projects. An initial pipeline of projects includes 18 high-impact investments in three strategic sectors (energy, transport, and digital infrastructure) across Africa, Asia and the Pacific, and Latin America and the Caribbean.
The collaboration, which will include regular high-level engagement and progress updates, is designed to ensure that projects move not only from pipeline to financing, but from financing to jobs, services, and results. The announcement was made in the margins of the Global Gateway Forum that takes place on 9 and 10 October in Brussels.
World Bank Group President Ajay Banga said: “Creating jobs is a strategic choice. Jobs created in emerging economies expand local opportunity while fuelling global demand. That’s why this partnership matters. Together, the European Commission and the World Bank Group can align investments, unlock private capital, and deliver results at a scale neither could reach alone.”
European Commission President Ursula von der Leyen said: “Today, we are taking our partnership with the World Bank to the next level. This new framework will guide how we steer, govern, and monitor joint projects in the areas like energy, transport, and digital infrastructure. This will make sure that Global Gateway’s strategic investments, hand in hand with the World Bank Group’s capacity to deliver reforms, can crowd in maximum private capital.”
This partnership has objectives to create local jobs and drive sustainable economic growth, with a focus on building vibrant private sectors that create opportunity for local communities, especially in countries with abundant natural resources and large youth populations.
It advances the three pillars of the World Bank Group’s job creation strategy: investing in human and physical foundations like education, healthcare, roads, ports, and electricity;fostering business-friendly environments with clear laws, predictable taxes, and transparent institutions; and supporting the private sector with capital, guarantees, and risk insurance.
It also complements a unique feature of the Global Gateway: in addition to investment in hard infrastructure for the long term built to the highest quality and environmental standards, Team Europe also provides regulatory support, skill development, training, research, and investment in local jobs and companies.
The 18 initial projects were chosen for their alignment with Global Gateway and World Bank Group priorities, along with their proven ability to scale, potential to attract private capital, and expected impact on jobs creation, productivity, and regional integration.
Global Gateway
Global Gateway is the EU’s external investment strategy to build smart, clean, and secure connections in the digital, energy, and transport sectors, as well as strengthen health, education and research systems globally. It fits the current geopolitical context by nurturing equal partnerships that increase strategic autonomy and resilience of Europe and partner countries alike. It is an attractive offer thanks to its sustainable investments. It is the EU’s contribution to the Sustainable Development Goals beyond its borders.
 
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Funding Cuts Puts More Than 1,000 Jobs At Risk, State To Take Total Economic Hit of $650 Million
Governor Calls On Washington Republicans To Restore Funding and Stop Playing Politics With New York Jobs and Businesses

Governor Kathy Hochul today highlighted a list of federal funding cuts, released by Congress, that outlines grants terminated by the Trump administration through the Department of Energy. Last week, the White House announced that it was going to abruptly terminate nearly $500 million in clean energy grant funding to factories and other businesses across New York. These cuts will risk more than 1,000 good-paying jobs and harm economic growth in regions across the state, with an estimated statewide economic hit of $650 million. With the cancellation of these projects, communities will suffer and families will go without paychecks, including those in the very districts whose Congressional representatives continue to greenlight reckless cuts out of Washington.
“Donald Trump and his Republican allies in Congress are playing politics with the government shutdown, and New York’s economy and hard-working families are paying the price,” Governor Hochul said. “These cuts directly impact local businesses and major companies, putting workers out of jobs, shuttering factories, and slowing our state’s economic progress. New York Republicans should grow a spine, stand with our workers and demand that President Trump restore this funding.”
Projects earmarked for termination across New York State based on numbers provided by the House Committee on Appropriations:

Region
Recipient Name
Award Amount

WNY
CleanFiber Inc.
$10,000,000

WNY
Jamestown Board of Public Utilities
$17,000,000

WNY
Research Foundation for the State University of New York
$2,279,996

Mid-Hudson
Urban Mining Industries, LLC
$37,117,830

Mid-Hudson
Urban Electric Power Incorporated
$6,500,000

Mid-Hudson
International Business Machines Corporation
$19,736,446

CNY
BITZER Scroll Inc.
$5,005,252

CNY
American Institute of Chemical Engineers
$36,525,625

Finger Lakes
Ionomr Innovations Inc.
$4,969,022

Finger Lakes
Plug Power Inc.
$70,877,654

NYC
Hearth Labs Solutions Inc.
$1,299,971

Southern Tier
Dimensional Energy Inc.
$2,053,837

Southern Tier
Cornell University
$7,543,866

Southern Tier
Ecolectro Inc.
$3,600,000

Capital Region
General Electric Company
$18,216,514

Capital Region
GE Vernova Operations, LLC
$44,254,145

Capital Region
New York State Energy Research and Development Authority
$21,500,000

Capital Region
Plug Power Inc.
$76,462,353

Capital Region
Interstate Renewable Energy Council Inc.
$12,968,170

Capital Region
Rensselaer Polytechnic Institute
$1,499,962

NYC
it’s electric Inc.
$1,475,000

NYC
The Trustees of Columbia University in the City of New York
$1,620,000

NYC
New York City and Lower Hudson Valley Clean Communities, Inc.
$1,669,973

NYC
American Institute of Chemical Engineers
$43,140,625

NYC
NYC Department of Environmental Protection
$1,471,264

 
Empire State Development President, CEO, and Commissioner Hope Knight said, “These federal cuts are shutting down projects already underway, and will stifle New York’s clean energy economy while killing good paying jobs. Communities that were on the brink of transformative growth will now face stalled investments and lost paychecks, as New York’s progress toward a sustainable future stalls. Governor Hochul continues to stand up and speak out for New Yorkers, and the businesses looking to drive economic growth in the 21st century.”
New York State Energy Research and Development Authority President and CEO Doreen M. Harris said, “These federal funding cuts put thousands of good-paying jobs at risk while harming the momentum of New York’s clean energy industry by creating further uncertainty for the organizations and businesses that need stability to plan, invest, and grow here. Once again, short-sighted political games at the federal level will undermine innovation and progress in one of the fastest growing sectors of our economy.”
Senator Charles Schumer said, “Donald Trump’s rash actions will hike energy costs for New Yorkers and waste hundreds of millions in investment by wiping out projects already underway in his reckless campaign of chaos & revenge. This goes beyond targeting blue states. It is taking a wrecking ball to working families’ lives from Jamestown to Rockland County, putting countless construction workers out of jobs and raising families’ electric bills just to score petty political points. NY House Republicans’ silence — as Trump rips away billions of sound investment and thousands of good-paying jobs from their backyard — is deafening. Instead of playing politics with the shutdown, President Trump should be working on bipartisan solutions to lower Americans’ costs, boost diverse energy supply, and create jobs.”
Senator Kirsten Gillibrand said, “Clean energy is the way of the future for a healthier and more affordable New York State. These Trump administration cuts will have devastating consequences for New Yorkers’ quality of life, the state’s economy, and the overall wellbeing of our communities. I am deeply disappointed in my Republican colleagues who are turning their backs to their constituents by supporting these funding cuts.”
Representative Jerrold Nadler said, “Trump has brazenly cut half a billion dollars in clean energy funding, and my Republican colleagues lack the spine to stand up to him. We will not let Donald Trump’s personal campaign of retribution against our city and state continue down this reckless path. This careless decision will have detrimental consequences; if New York’s economy gets hit, the entire country will feel it, thousands of good paying jobs will be lost, and hard-working families will go without paychecks. These cuts must be reversed immediately, and I hope my Republican colleagues will join me in calling on Trump to give New York our already approved funding back.”
Representative Nydia M. Velázquez said, “These cuts are a direct attack on New Yorkers and our clean energy future. These grants create good jobs, grow our economy, and move our state toward sustainability. Stripping away this funding threatens workers in my district and across the state and undermines the progress our communities have fought to achieve. New York Republicans need to stand with their constituents instead of standing by while this administration puts New Yorkers’ livelihoods on the line.”
Representative Yvette D. Clarke said, “At a time when Trump’s devastating cuts risk undermining the economic stability of communities across New York, our neighbors statewide are pleading with their Republican representatives to stand up for them, their families, and their futures – but they’ve heard nothing back but betrayal. New York Republicans are running out of time to figure out if they serve the people who put them in Congress, or the corrupt president who will toss them aside the instant they’re no longer useful. I stand with Governor Hochul and the people of our state in demanding my Republican colleagues make the right choice by, at long last, putting New York first.”
Representative Grace Meng said, “We should always be working to promote jobs and economic growth in our state and that includes New York’s clean energy sector. I have spoken out against cuts made by the administration that harm our local communities, and I will continue to do so. New York deserves to receive all the resources we require.”
Representative Adriano Espaillat said, “From the rising costs of groceries, utilities, and housing, affordability is among the highest concerns facing New Yorkers and their families. Yet, the Trump administration has failed to work collaboratively to find solutions that would provide families the much needed relief they deserve. Rather than focusing on solutions to curb these ballooning costs, the administration has canceled critical projects and programs that communities rely on. We will stand firm to combat the administration’s ineffective and dangerous policies that threaten the livelihoods and wellbeing of New York families and we will hold them accountable.”
Representative Paul Tonko said, “Instead of working in a bipartisan fashion to advance our state’s growing 21st century economy, Donald Trump and his Republican allies in Congress have chosen to unilaterally terminate hundreds of millions of dollars in clean energy funding for New York State and our Capital Region. Let’s be clear — these aren’t Democratic or Republican projects. These are cutting-edge programs working to drive innovation and bring energy costs down for everyone. By canceling hundreds of these projects across the nation, Donald Trump and his enablers are showing that they care more about their own power than about making life affordable or delivering good-paying jobs for the American people. It’s time for my Republican colleagues to stand up to this bullying behavior and advocate for the best interests of our communities.”
Representative Joe Morelle said, “At the direction of Donald Trump, Congressional Republicans chose to shut down the government rather than negotiate with Democrats—and New Yorkers are paying the price. These cancelled grants—including over $75 million destined for the Rochester region—will hurt businesses and families across our great state. As Vice Ranking Member of the House Appropriations Committee, I’m working with my colleagues to stand up to Donald Trump and secure the federal investments New Yorkers deserve.”
Representative Dan Goldman said, “Donald Trump’s reckless and shortsighted clean energy cuts are nothing short of partisan warfare against New Yorkers. After kicking over a million New Yorkers off their health care, Trump and his New York Republican allies like Elise Stefanik and Mike Lawler are now yanking away half a billion dollars in clean energy funding as punishment for a shutdown they caused. They’re putting politics over paychecks and jeopardizing thousands of good-paying union jobs in communities across our state. Once again, New York Republicans in Congress would rather serve Trump’s political agenda than stand up for their own constituents.”
Representative Tim Kennedy said, “Canceling these shovel-ready projects will kill jobs, stifle innovation, and raise costs for working families. These projects would have lowered energy costs and strengthened our grid during severe weather. Instead, Trump and Congressional Republicans have again sided with special interests over their own constituents, making it harder for families to pay their bills and for America to lead in the industries of the future. Western New Yorkers should be building the technologies that power the next generation, not watching those opportunities disappear because of Republicans in Washington.”
Representative John W. Mannion said, “This administration thinks research and innovation only matter in the states they won in an election. They’re wrong. These reckless cuts are job killers that hurt families across New York. They also sell out our future, hand an advantage to China, and will drive up energy costs for everyone. This funding should be restored immediately – and I’m advocating to restore it in congressional districts represented by either party, because that’s what’s good and right for all New Yorkers and all Americans.”
Representative Josh Riley said, “Families and small businesses in the Hudson Valley and Southern Tier are already getting squeezed by sky-high utility bills — and now this administration wants to make it even harder to keep the lights on. These cuts will only make life more expensive for working people. I’ve fought utility monopolies and their outrageous rate hikes, and I’ll keep fighting to restore funding and lower costs for Upstate New Yorkers.”
Assemblymember Al Stirpe said, “The ongoing attack from the current federal administration on anything that promotes clean energy continues unabated. Any disruption in already approved funding for these programs threatens the potential for new, high-paying jobs, stifles economic growth, and stagnates significant progress towards greener alternatives. As Chairman of the State Assembly Economic Development Committee, it is clear that such cuts do nothing but set New York State’s businesses and communities back – all while hurting real people and working families in the process. Companies that had been planning their next steps forward in the clean energy sector will now be faced with unnecessary hardship or be forced to reconsider critical investments. Without restoring this funding, New York risks falling behind in one of its fastest-growing industries and losing hard-won progress in the clean energy sector.”
Assemblymember Micah Lasher said, “Donald Trump is once again targeting New York’s economy by slashing funding for clean energy, putting thousands of good-paying jobs on the chopping block. Every Republican member of Congress from New York has a lot to answer for. I stand with Governor Hochul in demanding that these cuts be immediately reversed.”
Albany County Executive Daniel P. McCoy said, “Clean energy investment has been one of the most effective drivers of growth in our state, fostering innovation, strengthening our economy, and positioning us as a leader in sustainability. The withdrawal of these funds threatens to stall that momentum and undermine years of progress. I urge the Trump administration to reconsider this decision and fully restore the funding. Maintaining our commitment to clean energy is not only sound environmental policy, but it is also a vital economic necessity for the Capital Region and New York State as a whole.”
Erie County Executive Mark C. Poloncarz said, “Who is served by these cruel and vicarious cuts supported by New York’s cravenly sycophantic GOP caucus? Did New York Republicans realize that they were electing ‘representatives’ who would gladly vote to crush their local economies, strip away good-paying jobs, and let their communities wither all to pay for tax cuts for billionaires? It’s disturbing that elected officials would so openly and brazenly vote against the best interests of their constituents, but that’s today’s GOP. Their legacy will be one of shame and dishonor, accumulated in the service of a felon. New York deserves far, far better than this group of feckless bootlickers who sell us out for their own benefit.”
City of Schenectady Mayor Gary McCarthy said, “GE Vernova has played a vital role in revitalizing the GE campus through continued innovation in clean energy technologies. However, the proposed federal funding cuts threaten to significantly impede this progress, with far-reaching negative impacts not only on the company’s momentum but also on the broader economic and workforce development efforts across the city and county.”
Amherst Town Supervisor Brian Kulpa said, “Not only do these cuts immediately impact families and businesses, by cutting funding for clean energy development, Washington is taking direct aim at future generations. There’s a huge demand for energy, and the elimination of this clean energy funding will do irreparable harm. Today’s investments are the cornerstone that builds industry of tomorrow. These cuts are reckless and they significantly hurt local communities. I join Governor Hochul in urging our local representatives to immediately restore this vital funding – we need to invest in energy the same as we invest in infrastructure, it is our lifeblood.”
Henrietta Town Supervisor Steve Schultz said, “The need to reduce our environmental impact is reinforced almost every news cycle with violent storms, record high temperatures, shrinking glaciers, and rising sea waters. As with any developing technology, it can have difficulty competing with established solutions. This is where a responsible government steps in with incentive programs and policies to help level the playing field while those new technologies mature. The United States has a long history of such programs, which has helped the nation not only lead the world in new technologies but become an economic superpower while doing so. The investment in these new technologies pays dividends in the long term. Plug Power, Inc, in Henrietta, is an example of this, creating clean energy equipment for use in industrial and commercial settings. Dramatic cuts, especially those of a retaliatory or vindictive nature as we have seen lately out of Washington, will have a lasting negative impact that could take years or decades to recover from.”
Brighton Town Supervisor William Moehle said, “The Trump administration’s attacks on green energy investments are bad for the nation, but they are especially bad for Brighton. $4,969,022 in funding has been cut for one of Brighton’s high technology businesses, Ionomr Innovations, which conducts cutting edge clean technology research here in Brighton. Now more than ever, it is important to fund advances in clean energy technology, and I call on the administration to restore this important research funding for America’s future.”
Albany County Legislature Chairwoman Joanne Cunningham said, “We are resilient in Albany County. Even with nearly $111 million of our taxpayers’ funding not returning to us, we will continue to support our local business community with our state partners and Governor Hochul in particular. Recognizing the uncertainty of federal funding, we are proactively working to advance development in Albany County through our partnership with the State and the Governor on the multi-million-dollar expansion of the Albany Capital Center. We’re also thankful for the $400 million the State is investing in Downtown Albany at her request. With this continued support, we’re confident we can overcome this latest challenge.”
Rensselaer County Legislature Deputy Minority Leader Nina Nichols said, “Governor Hochul stands with the thousands of New Yorkers whose livelihoods are threatened by Washington’s reckless cuts. Slashing $500 million in clean energy grants doesn’t just stall progress—it risks over 1,000 good-paying jobs and delivers a $650 million blow to our economy. These communities deserve investment, not abandonment.”
Troy City Council President Sue Steele said, “Clean energy is critical to protecting our planet and creating a greener future for local communities like Troy. Just as we’re starting to see the economic and environmental benefits of federal investments in solar and wind energy, as well as sustainable building materials, the Trump administration wants to drag us back to the days of polluted air, dirty water, and harmful greenhouse gases from fossil fuels. I stand with Governor Hochul in condemning the Trump administration’s cuts to clean energy research in Troy and the Capital Region, and urge Congressional Republicans to take a stand against this latest attack on science, technology, and the hardworking Americans powering the renewable energy industry.”

Compliments of the New York State Governor’s Office

The post New York State Governor | Governor Hochul Slams Nearly Half a Billion Dollars in Federal Funding Cuts Targeting Dozens of New York Businesses and Clean Energy Programs first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

WASHINGTON, D.C. — This week, the United States Senate confirmed Mr. Ben Black as the new Chief Executive Officer (CEO) of the U.S. International Development Finance Corporation (DFC).
We are pleased to welcome Mr. Black as the next CEO of DFC. His confirmation comes at a pivotal moment as we continue to advance our dual mandate of fostering strategic and economic development investments and serve as a force multiplier for the Trump Administration’s foreign policy, economic prosperity, and national security agenda.
Mr. Black brings nearly 20 years of investment, managerial, and legal experience and a proven record of leadership to the role. His expertise will accelerate private capital deployment, increase opportunities for American companies and workers, and elevate DFC as a best-in-class financial institution and investment partner of choice.
On behalf of the entire DFC team, I am honored to welcome Ben to DFC and look forward to supporting his leadership as we continue to advance DFC’s important work helping make America and our partners around the world safer, stronger, and more prosperous.
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The U.S. International Development Finance Corporation (DFC), established in 2019 with bipartisan support under President Trump, is America’s development finance institution. DFC partners with the private sector to advance U.S. foreign policy and strengthen national security by mobilizing private capital around the world. DFC invests across strategic sectors including critical minerals, modern infrastructure, and advanced technology — fostering economic development, supporting U.S. interests, and delivering returns to American taxpayers.
 
Compliments of the United States International Development Finance CorporationThe post DFC | Statement from Acting CEO Mr. Dev Jagadesan on Confirmation of DFC CEO Mr. Ben Black first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.