Latest articles and blogs
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Why are euro area households saving more than usual?
Since the COVID-19 pandemic, the household savings rate in the euro area has been exceptionally high.The savings rate has been driven up in particular by the decline in households’ real wealth, higher interest rates and increased public deficits. Increased uncertainty due to the Middle East war and higher energy prices are slowing the recovery of private consumption.
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Will higher defence spending boost euro area growth?
Defence spending is expected to increase significantly in the euro area in the coming years. Until now, euro area defence spending has mainly consisted of consumption expenditure, such as personnel costs. Growth effects would likely remain temporary and would support a number of specific manufacturing industries.
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Is the euro area investing enough?
Since the global financial crisis, investment has grown more slowly in the euro area than in the United States or the United Kingdom. There is no lack of savings in the euro area, but there are not enough attractive investment opportunities.
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Impact of geopolitical surprises on euro area inflation varies case by case
Geopolitics can bring about volatility in inflation and in the rest of the economy. However, geopolitical surprises and their consequences are not particularly well understood yet in economics. The impact of such surprises on euro area inflation nevertheless varies case by case.
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Fiscal policy and debt sustainability in the euro area since the COVID-19 pandemic and energy crisis
The revised EU fiscal rules aim to improve primary balances and consequently strengthen the debt sustainability of EU Member States.The sustainability of government debt levels depends on the size of the interest rate-growth differential and primary balances.
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Monetary policy measures have strengthened the anchoring of inflation expectations
Inflation expectations are of key significance for price trends. Expectations regarding the future rate of inflation will affect price setting by businesses and the wage demands of employees.