EU leniency on Germany’s fiscal plan highlights rule rigidity and the need for reform to support investment. Germany’s July 2025 medium-term fiscal-structural plan exposes the tension between raising public investment in a low-risk country and the requirement in European Union fiscal rules for member state debt to comply with the 60 percent of GDP public […]
In many Germanic languages, the word for ‘debt’ also means ‘guilt’. This column explores whether the linguistic overlap leads to greater debt aversion in Germany, the Netherlands, Sweden, and Switzerland. Using a guilt-laden term reduces willingness to borrow, lowers approval for government debt, and influences firms’ financing plans and politicians’ framing of fiscal policy. While […]
Fintech has improved efficiency and inclusion in banking, especially lending, but has also raised concerns about financial stability, privacy, discrimination, and overall wellbeing. This column introduces a framework that outlines the differences between fintech firms and traditional banks and how fintech affects frictions in lending. New technologies influence the differentiation between banks and fintechs and […]
They aim to tackle supply gap. Saudi Arabia has completed a study about the optimal options to address the supply shortage in the domestic steel market, the Kingdom’s Minister of Industry and Mineral Resources Bandar Alkhorayef has said. Options involve manufacturing 7 steel and iron products, potentially opening up investment opportunities worth 60 billion Saudi […]
Geopolitical risks impact firms on both sides of the Atlantic. While the short-term outlook is better than expected, there remains huge uncertainty related to the nature and extent of more permanent geopolitical shifts and breaks. This column reports findings from the EIB Investment Survey 2025, which show that EU and US firms continue to invest, […]
Global growth is projected to slow from 3.3 percent in 2024 to 3.2 percent in 2025 and 3.1 percent in 2026. The global economy is showing signs of a moderate slowdown after a first half of robust activity largely attributable to temporary factors — such as front-loading of trade and investment and inventory management strategies, […]
In July, the European Commission fired the starting gun on the negotiations of the next Multiannual Financial Framework – the EU’s budget. Against a tough geopolitical and economic backdrop, the call to bolster Brussels’ public finances clashes with the reluctance of some member states to spend more centrally. This column outlines a possible way forward […]
WTO economists raised the 2025 merchandise trade growth forecast to 2.4%. Global merchandise trade outpaced expectations in the first half of 2025, driven by increased spending on AI-related products, a surge in North American imports ahead of tariff hikes, and strong trade among the rest of the world. In response, WTO economists raised the 2025 […]
Wall Street’s main indexes advanced on Monday following Friday’s pullback, as investors returned to risk assets after President Donald Trump’s softer tone eased concerns over renewed U.S.-China trade tensions. Aiding sentiment, U.S. Treasury Secretary Scott Bessent said in an interview with Fox Business Network on Monday that Trump was on track to meet his Chinese counterpart in […]
The U.S. stock market’s bull run is almost three years old, but if history is a guide, that would make it only middle-aged. The S&P 500 has set a series of record highs in the lead-up to Sunday’s anniversary of the start of the bull market on October 12, 2022. On that date three years ago, […]
