https://www.esm.europa.eu/blog/stability-fund-enhance-europes-fiscal-framework In this blog, we argue that the review of the EU economic governance presents an opportunity to design an economically sound and politically realistic fiscal stabilisation capacity, possibly with the ESM’s involvement, to complement an appropriate fiscal framework.[1]A politically opportune...

https://www.esm.europa.eu/blog/navigating-euro-area-through-slowing-global-economy The ESM, as it was the case in the past, took an active role in these meetings. Here are our six takeaways:Cost-of-living crisisRecord high inflation in most countries across the globe is taking a toll on real income as well as growth and forces monetary policy to tighten. This was the focus of...

https://www.esm.europa.eu/blog/why-europe-needs-strong-market-making Since the 2008 global financial crisis, market makers, have undergone major regulatory changes that improved the measurement and control of risks. But these changes have also put pressure on banks to rethink their business model, particularly in capital-intensive activities such as market making...

https://www.esm.europa.eu/blog/cold-winter-ahead-implications-russian-gas-cut-euro-area As the war in Ukraine continues, gas flows from Russia have been partially reduced or even fully stopped in some European countries. The temporary closure of the Nord Stream 1 pipeline from Russia to Germany in early-July for maintenance exacerbated the risk of longer-term delivery impairment for...

https://www.esm.europa.eu/blog/vision-debt-capital-markets This digital upgrade is also vital for Europe’s ambitions to advance capital markets union. Getting legal fragmentation out of the way will allow for faster adoption of digitalisation and the harmonisation and scaling up of European debt markets – as well as make them more competitive...

https://www.esm.europa.eu/blog/would-quality-life-considerations-improve-financial-assistance-evaluations Post-programme evaluations of financial assistance are an important element in improving crisis responses. So far, EFSF and ESM evaluations have, in line with the ESM’s mandate, focused on how financial assistance affects economic growth and resilience. However, the consequences for citizens’ lives...

https://www.esm.europa.eu/blog/unlocking-banks-capacity-fund-recovery Credit crunch avertedEurope’s unprecedented policy effort helped avert a credit crunch and led to increased private sector lending.The timely and concerted support measures implemented by EU and national institutions ensured that banks continued providing new lending to the economy during the...

https://www.esm.europa.eu/blog/regional-perspectives-economic-impact-double-shock-asia-europe-latin-america Since the pandemic hit two years ago, unprecedented measures have been taken to address the initial shock waves. While some economies bounced back fairly quickly, the ability of countries to withstand the economic damage and control the disease varies widely – as does the speed of the economic...

https://www.esm.europa.eu/blog/outside-box-esm-stepping-its-game-esg The ESM is also active in this substantial new asset class, as a significant ESG bond investor, a borrower with the means to issue social bonds, and a newly added observer at the Network of Central Banks and Supervisors for Greening the Financial System (NGFS).The NGFS, born at the Paris “One Planet...

https://www.esm.europa.eu/blog/euronomics-current-terms-trade-shock-and-loss-wealth-are-we-heading-back-1970s The current increase in oil, gas, grain, and metal prices translates to major changes in terms of trade for countries around the world.[1] Over the past year, the price of energy and other commodities the euro area imports has increased faster than the price of its exports, disadvantaging its...

https://www.esm.europa.eu/blog/two-years-esm-blog With this in mind, we started the ESM Blog two years ago, on 12 February 2020. The first contributions came out just as the pandemic crisis began to reach Europe. We explained the EU’s policy response to Covid-19 as well as the ESM’s contribution, and how the reform of institutions can better help...

https://www.esm.europa.eu/blog/time-euro-safe-asset-futures Integrated and more liquid European financial markets could help enhance the euro’s global role, an advantage an increase in euro area safe assets now being issued could offer. There are various sources that contribute to the development of a euro safe asset, including highly-rated member states’...

https://www.esm.europa.eu/blog/outside-box-euro-magnet-central-banks-again Together with my funding team, we have analysed the demand and offer some insights into what this means and why it matters. In developing the euro as an international currency, an important element is to understand how reserve managers of central banks assess issuers of euro-denominated bonds such...

https://www.esm.europa.eu/blog/out-box-new-esm-new-crisis The Covid-19 pandemic is a crisis measured in the tragic human cost of fatalities as well as an expected sharp global economic recession in 2020. Investors are understandably keen to know how the ESM, as a crisis resolution body, can help Europe overcome the pandemic. At a Global Investor Call...

https://www.esm.europa.eu/blog/out-box-investing-better-tomorrow Two years ago, I took my family to Australia to show our young kids the natural beauty and biodiversity of our planet. To our sadness, we found pristine beaches threatened by plastic from around the world, and sick endangered ocean creatures, the victims of human actions. It was a personal wake-up...

https://www.esm.europa.eu/blog/savings-spending-fast-track-recovery During the coronavirus pandemic, euro area household savings – income not used for consumption – rose to unprecedented levels, as was the case in many industrial countries. In 2020, the annual savings ratio in the euro area, household savings[1] as a fraction of their disposable income, increased by...

https://www.esm.europa.eu/blog/reviving-securitisation-europe-cmu Securitisation is the financial practice of pooling various types of debt, such as residential mortgages, car loans or credit card debt, and selling their related cash flows to third party investors as securities. Due to expansion of poorer quality subprime mortgages and complex and opaque...

https://www.esm.europa.eu/blog/euronomics-fresh-look-greek-debt-sustainability Greece emerged from the past debt crisis more resilient. It conducted a number of reforms, including making the public administration more efficient, simplifying licensing, streamlining procedures, and facilitating trade. As a result, the Greek economy was structurally more resilient at the start of...

https://www.esm.europa.eu/blog/how-esm-was-built-coding-language We have created a single cloud-based banking ecosystem that enables end-to-end workflow for our trades and position keeping, linking eight critical ESM functions covering the whole trade lifecycle. The system optimises time, eliminates paperwork, and reduces operational risk regardless of differing...

https://www.esm.europa.eu/blog/strengthening-international-role-euro European Union (EU) policymakers have recognised the strategic importance of the topic, placing it high on the agenda of the upcoming March Euro summit. In addition, the European Commission has highlighted the need for more geo-political financial sovereignty. We contributed to the debate with a...