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.
Employment has grown strongly in the euro area since 2020. This has been attributable to both demand and supply factors. In the near future, population ageing will reduce the supply of labour in the euro area. The impact of population ageing will nevertheless be softened by a rise in the labour force participation rate, work-based immigration and a reduction in structural unemployment.
A considerable proportion of the corporate loan stock in the euro area consists of loans with a fixed – rather than a variable – rate of interest. However, this proportion differs by industry and even more so by country. In Germany and France, the majority of corporate loans are tied to a fixed rate. In Finland, the proportion of fixed rate loans is small.
This website saves on your device small data files known as cookies. These are divided into essential cookies and statistical ones. Essential cookies are always operational, as they allow use of the site and ensure data security.
The site does not use any cookies that identify the user.
Select ‘Approve cookies’ or click ‘Edit cookie settings’, read the additional information and tailor the cookies to your preferences.
Functional cookies
Essential cookies enable the website’s data security and basic functions such as navigating around the site and the search function. Essential cookies do not gather any data that can identify a user of the site.
Statistical cookies
Statistical enhancement cookies help us develop the site to meet users’ needs. They gather data on e.g. users’ terminals, site visits and time spent on the site. Statistical cookies do not gather any data that can identify the user.