Latest documents

Summary : Simon Harris, Minister for Finance of Ireland, is participating in the ECON Committee in his capacity of President of the ECOFIN Council during the Irish Presidency (July - December 2026). According to Article 121 of the Treaty on the Functioning of the European Union, “Member States shall regard their economic policies as a matter of common concern and shall coordinate them within the Council”. This briefing provides an overview of the Irish Presidency's priorities in ECON-related matters, including the Council’s work on the implementation of the European Semester for economic policy coordination, the conclusion of the Recovery and Resilience Facility, progress on the Savings and Investments Union (SIU), and efforts to reach agreement on the digital euro and the remaining elements of the Single Currency Package.

Authors : MAZZOCCHI Ronny, SABOL MAJA, LOI GIACOMO, SPITZER Kai Gereon, IGLESIAS ESCUDERO Santiago, STIEBER Harald, MEHMEDI MENTOR, RUANO REMIREZ SOFIA

Summary : This briefing has been prepared for the hearing with the Chair of the Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA), Bruna Szego, scheduled for 15 July 2026 in the ECON Committee.

Authors : IGLESIAS ESCUDERO Santiago

Summary : This briefing has been prepared for the public hearing with the Chair of the Single Resolution Board (SRB), Dominique Laboureix, scheduled for 15 July 2026 in the ECON Committee.

Authors : MAZZOCCHI Ronny, SPITZER Kai Gereon

Summary : This paper presents the aggregated results of a survey conducted among Members of the Monetary Policy Expert Panel (MPEP) ahead of the June 2026 Monetary Dialogue with ECB President Christine Lagarde. The opinions expressed in this document are the sole responsibility of the survey respondents and should not be attributed to the European Parliament or its services.

Authors : MAZZOCCHI Ronny, SABOL MAJA, MEHMEDI MENTOR, RUANO REMIREZ SOFIA

Summary : The EU’s Markets in Crypto-Assets Regulation (MiCAR) establishes a broad but residual framework for crypto-assets not already covered by existing EU financial legislation, combining rules for stablecoins with a wider regime for crypto-asset service providers. By contrast, the US GENIUS Act focuses specifically on payment stablecoins, establishing rules on issuance, reserve backing and supervision within the existing US regulatory structure. This briefing compares both frameworks, examining their approaches to classification, supervision, AML/CFT and regulatory coordination, while also considering selected implications for financial stability and monetary sovereignty. It argues that the main difference between the two models lies less in their treatment of stablecoins themselves than in how they organise the relationship between digital assets, existing financial law and supervisory structures. More generally, the comparison illustrates how digital asset regulation is progressively moving from experimentation towards integration into existing financial and regulatory systems.

Authors : IGLESIAS ESCUDERO Santiago

Summary : This briefing has been prepared for the public hearing with the Chair of the Single Supervisory Mechanism (SSM), Claudia Buch, scheduled for 02 July 2026 in the ECON Committee.

Authors : MAZZOCCHI Ronny, SPITZER Kai Gereon

Summary : The Hormuz shock of February 2026 confronts the European Central Bank (ECB) with a familiar dilemma: inaction can risk entrenching inflation, while tightening risks deepening the slowdown and penalising renewable energy and cleantech investment. We argue that the ECB should be cautious and, if tightening proves necessary, ensure its operations shield renewable energy and cleantech sectors. Our analysis also reveals a growing gap between the ECB's communication on fossil fuel risks and its policy framework.

External author : Clara LEONARD, Benjamin BRAUN, Jens van ‘t KLOOSTER, Eric MONNET

Summary : This briefing was prepared ahead of the Monetary Dialogue between the Committee on Economic and Monetary Affairs (ECON) and the European Central Bank (ECB) President. It provides an overview of recent ECB monetary policy decisions, the nature of the latest energy price shock, and its implications for inflation dynamics and the outlook. It places particular emphasis on the scenarios presented in the Eurosystem staff macroeconomic projections of June 2026, and reviews recent ECB publications alongside monetary policy developments in the US.

Authors : MAZZOCCHI Ronny, SABOL MAJA, MEHMEDI MENTOR, RUANO REMIREZ SOFIA

Summary : This briefing relates to ECON’s scrutiny of the delegated act (DA) on temporary adjustments to Basel III market risk rules (the Fundamental Review of the Trading Book / FRTB), adopted by the Commission on 4 June 2026, C(2026)3647, under Article 461a(2)(a) CRR. It explains the background, legal procedure, and the amendments effected via this DA to the legal basis, i.e. the Capital Requirements Regulation 575/2013 (CRR).

Authors : KOLASSA Doris, MAIER Rudolf, HERMET EMILIE MARIE CAROLINE CLA

Summary : This briefing note covers the main elements of the 2026 European Semester Spring Package proposed by the European Commission, notably the implementation of the Stability and Growth Pact (2025), the 2026 country-specific recommendations (CSRs), the Macroeconomic Imbalances Procedure and the Joint Employment Guidelines. Please refer to EGOV dedicated briefings for a detailed analysis of the implementation of the SGP in 2025 and assessment of the energy price shock.

Authors : MAZZOCCHI Ronny, NAVARRA Cecilia, LOI GIACOMO, STIEBER Harald, MEHMEDI MENTOR, HOLST AMELIE SOPHIE, RUANO REMIREZ SOFIA

Summary : Pierre Gramegna, Managing Director of the European Stability Mechanism (ESM) is participating in the first exchange of views with the ECON Committee in the 10th parliamentary term, based on the Memorandum of Cooperation between the ESM and European Parliament signed in 2024. This briefing provides an overview of the ESM setup in 2012, its key features, instruments, and capital structure. It also considers the ESM Annual Report 2025 and discusses the main findings of the joint discussion paper by the ESM and EIOPA on the macroeconomic, fiscal and financial stability implications of climate-related natural catastrophes. Lastly, it reviews various proposals for euro area safe assets, which are becoming increasingly prominent in the debate, as well as the limited role that the ESM can play in that regard and in financing defence investments, bearing in mind that the revised ESM Treaty has not been ratified by all euro area Member States.

Authors : MAZZOCCHI Ronny, SABOL MAJA, SPITZER Kai Gereon

Summary : This briefing provides an assessment of the ECB Annual Report 2025 and the ECB’s feedback statement responding to the issues raised and requests made by the European Parliament in its resolution on the “European Central Bank – annual report 2025”, which relates to the ECB Annual Report for the previous year.

Authors : MAZZOCCHI Ronny

Summary : We assess the latest monetary policy stance of the European Central Bank (ECB). We first discuss whether the inflation surge is temporary or permanent and examine the nature of the inflation shock. We then analyse the ECB’s interest rate and quantitative tightening policies. Finally, we examine inflation differentials within the euro area and the ECB’s communication strategy.

External author : Paul DE GRAUWE, Yuemei JI

Summary : On 3 June 2026, the Commission published the European Semester Spring Package, including the first assessment of compliance with the net expenditure paths under the reformed Stability and Growth Pact. This briefing provides an overview of the main fiscal elements of the package. It examines the proposed extension of the national escape clause to energy-related expenditure, the Commission’s assessment of compliance for 2025 and 2026, and the progress made on reforms and investments underpinning extended adjustment periods.

Authors : MAZZOCCHI Ronny, LOI GIACOMO, RUANO REMIREZ SOFIA

Summary : This briefing assesses the impact of the recent energy price shock on the EU economy, with a focus on oil and gas price developments, their implications for growth, inflation and competitiveness, and the extent to which the current shock differs from the 2022 energy crisis. It also reviews the main EU and national policy responses, including the Commission’s “Accelerate EU” package, the Middle East Crisis Temporary State Aid Framework, the proposed extension of fiscal flexibility under the National Escape Clause for energy resilience measures, and measures adopted by Member States to cushion the impact of higher energy prices on households and businesses. Finally, it considers the role of a deeper Energy Union in strengthening energy security and reducing energy costs over the medium term.

Authors : MEHMEDI MENTOR

Summary : This at a glance paper, prepared ahead of the Monetary Dialogue with the ECB President on Monday 22 June 2026, compares three recent external papers commissioned by the European Parliament’s Committee on Economic and Monetary Affairs exploring the main features of the current energy shock and its implications for euro area inflation and ECB’s monetary policy.

Authors : MAZZOCCHI Ronny, MEHMEDI MENTOR

Summary : The inflation surge of 2022–2023, and the risk of recurrence following the outbreak of conflict in the Middle East in early 2026, raises fundamental questions about the appropriate monetary policy response to supply-driven inflation. We examine the anatomy of both inflationary episodes, the challenges in distinguishing between supply and demand shocks in real time, the adequacy of the ECB's response to the 2022–2023 energy crisis, and the lessons that can be drawn for responding to the current inflationary pressures.

External author : Christophe BLOT, Jérôme CREEL, François GEEROLF, Davide ROMELLI

Summary : This paper examines the factors that influence the persistence of inflation following energy price shocks. Although the current oil price shock is economically significant, it is less likely to generate persistent inflationary pressures than the energy crisis of 2022–23, as European gas markets remain relatively stable. Nevertheless, elevated geopolitical uncertainty and households’ recent inflation experience may increase the risk of second-round effects. Model simulations suggest that the long-term welfare costs of responding too cautiously to renewed inflationary pressures may exceed those associated with a somewhat stronger monetary policy response.

External author : Kerstin BERNOTH, Alexander KRIWOLUZKY

Summary : Executive Vice-President Fitto and Commissioner Dombrovskis are invited to the 23rd Recovery and Resilience Dialogue (RRD), scheduled for 15 June 2026. The RRD is the mechanism by which the European Parliament exercises democratic oversight over the implementation of the Recovery and Resilience Facility (RRF) according to the RRF Regulation. The previous RRD took place on 9 February 2026.

Authors : SCHWARCZ András, LOI GIACOMO, GHIRAN-MERVEILLE Anda-Diana, MEHMEDI MENTOR, RUANO REMIREZ SOFIA

Summary : Using the 2022-2023 experience as a benchmark, we examine the challenge the ECB faces as it confronts a new energy-driven supply shock, reaching three main conclusions. Modern cost-price transmission channels are such that even a temporary energy shock tends to produce persistent and broad-based inflationary effects. Mitigating fiscal measures increases inflation persistence and the cost of maintaining price stability. Current consumer price developments resemble those after the 2022 crisis. We suggest a simple “rule of thumb” to complement traditional econometric models in signalling a potential need for monetary tightening.

External author : Cinzia ALCIDI, Ignazio ANGELONI

Summary : While the retail digital euro project receives much political attention, the parallel process to develop a wholesale digital euro for use among financial market participants should not be overlooked. This briefing outlines and explains the European Central Bank’s projects Pontes and Appia and discusses their utility and potential for strengthening EU financial market integration. Pontes aims at establishing an interface between central bank money and tradable assets in the form of digital tokens. Appia is a more long-term project exploring the overall ecosystem and governance around such tokenised assets. Our briefing concludes that Pontes and Appia are a necessary condition for the EU to benefit from the promises of this technology, which can help addressing the inefficiencies of fragmented market infrastructures and thus support the Savings and Investment Union. By themselves, however, these projects might not be sufficient to overcome national silos. Doing so is likely to require harmonisation efforts at the level of securities and company laws.

Authors : LOI GIACOMO, SPITZER Kai Gereon

Summary : This paper provides a summary of all scrutiny activities of the European Parliament related to euro area monetary policy in occasion of the February 2026 Monetary Dialogue with the European Central Bank (ECB). It covers the topics chosen by the Committee on Economic and Monetary Affairs (ECON) and related expertise papers provided in advance of the Dialogue, the actual topics addressed during the Dialogue, a brief overview of results from the Monetary Policy Expert Panel Survey, the latest written questions made by Members to the ECB President and European Parliament resolution on the ECB Annual Report 2025. The document is published regularly ahead and after each Monetary Dialogue with the ECB.

Authors : SABOL MAJA, RUANO REMIREZ SOFIA

Summary : This paper provides a summary of all scrutiny activities of the European Parliament related to euro area monetary policy on the occasion of the December 2025 Monetary Dialogue with the European Central Bank (ECB). It covers the topics chosen by the Committee on Economic and Monetary Affairs (ECON) and related expertise papers provided in advance of the Dialogue, the actual topics addressed during the Dialogue, a brief overview of results from the Monetary Policy Expert Panel Survey, and the latest written questions made by committee Members to the ECB President. The document is published regularly ahead and after each Monetary Dialogue with the ECB.

Authors : SABOL MAJA, RUANO REMIREZ SOFIA

Authors : SANDERSKI ANDRZEJ, SERPIERI Margherita

Summary : Against the backdrop of the rapid expansion of private credit and its recent emergence as a source of investor concern, particularly in the United States, understanding the structure and vulnerabilities of private credit markets has important implications for financial and macroeconomic stability, including in Europe. This briefing provides an overview of the size, growth, and main features of the global private credit market, with a focus on the United States and Europe, and assesses the channels through which risks could affect financial stability. The first part outlines recent developments in private credit, including its growth as a major asset class, investor base, and return profile. The second part assesses key vulnerabilities, including risks, valuation uncertainty, leverage, data gaps, and growing interlinkages with bank and non-bank financial institutions. It also examines sectoral concentration, particularly exposure to software, AI-sensitive borrowers, and AI-related infrastructure financing. Finally, the briefing considers policy implications, highlighting the need to improve transparency, close data gaps, strengthen monitoring of exposures to banking and non-banking financial institutions, and ensure that risks are effectively assessed, priced, and disclosed, while preserving private credit’s role as a source of business financing.

Authors : MEHMEDI MENTOR, RUANO REMIREZ SOFIA

Summary : The global implementation of the Basel III standards is a cornerstone of financial stability and of a level playing field for banks worldwide. Given the size of the US economy and banking system in general, and the global reach of its largest banks in particular, the delay in US implementation of Basel III has become a growing concern, which we documented in an earlier briefing. In March 2026, US authorities have now published a new consultation paper that purports to pave the way towards the completion of Basel III in the US. In the present briefing, we aim to identify and assess US-specificities compared to the international standard. This analysis is not least relevant against the background of a recent ECB working paper that argued inter alia that EU banks would have “somewhat higher” capital requirements “on average” if subject to current US rules.

Authors : MAZZOCCHI Ronny, SPITZER Kai Gereon

Summary : On 17 March 2026, the Commission published for consultation a package of two DAs under the EU Taxonomy Regulation 2020/852, which amend the existing Climate and Environmental DAs, forming part of a broader review of the technical screening criteria (TSC) adopted to date. The aim of these amending DAs is to address identified implementation challenges by claryfing and simplifying technical screening criteria, including the ‘do no significant harm’ (DNSH) criteria and review ’transitional activities’ in the Climate DA. This review also responds to the legal obligation under the Taxonomy Regulation to regularly review and, where appropriate, amend the technical screening criteria. The proposed amending DAs are closely linked to the recent Omnibus I Sustainability simplification package and the Commission Communication ‘A Competitive Compass for the EU’. The proposed DAs are scheduled for adoption in mid-June 2026, with the objective of coming into effect by January 2027.

Authors : HONNEFELDER Stephanie, BACH Anna-Theresa

Summary : Ahead of the ECON public hearing on 5 May 2026 this briefing provides further background on selected technical aspects of the Market Integration and Supervision Package (MISP): asset management, central securities depositories (CSDs), central counterparties aka clearinghouses (CCPs), the proposed pan-European market operator regime (PEMO), consolidated tape (CTP), and distributed ledger technology (DLT). It complements already available EPRS legislative briefings on the package (EPRS briefings on the Master Directive, the Master Regulation, and the Settlement Finality Regulation).

Authors : MAZZOCCHI Ronny, IGLESIAS ESCUDERO Santiago, STIEBER Harald, MEHMEDI MENTOR, RUANO REMIREZ SOFIA

Summary : This briefing provides an overview of the role and mandate of the Eurogroup, including the role and accountability of its President. It covers: 1) The role of the Permanent President of the Eurogroup; 2) The President of Eurogroup and the European Parliament; 3) The role and mandate of the Eurogroup; and 4) Eurogroup transparency. The paper is an update of a previous version and will continue to be regularly updated. This document reflects the institutional situation as of November 2025, following the resignation of President Paschal Donohoe and during the transition period with Acting President Makis Keravnos of Cyprus.

Authors : SABOL MAJA, LOI GIACOMO

Summary : Kyriakos Pierrakakis is attending his first Economic Dialogue in the ECON Committee since being elected as President of the Eurogroup in December 2025. This is the second Economic Dialogue with a President of the Eurogroup during the 10th parliamentary term. The previous Economic Dialogue took place on 19 February 2025. For an overview of the role of the President of the Eurogroup, see Briefing: The role (and accountability) of the President of the Eurogroup.

Authors : MAZZOCCHI Ronny, SABOL MAJA, LOI GIACOMO, STIEBER Harald, MEHMEDI MENTOR, RUANO REMIREZ SOFIA

Authors : SERPIERI Margherita

Summary : This briefing provides a comparative analysis of anti-money laundering (AML) frameworks in five major financial jurisdictions: the European Union, the United States, the United Kingdom, Japan and Singapore. Although these jurisdictions broadly follow international standards developed by the Financial Action Task Force (FATF), their institutional architectures and supervisory approaches differ significantly. The analysis examines several key dimensions of AML governance framework, including the legal foundations of AML obligations, supervisory structures, beneficial ownership transparency, the scope of obliged entities, the regulation of crypto-assets, and enforcement mechanisms. Particular attention is given to how different institutional designs influence the credibility and effectiveness of AML supervision.

Authors : IGLESIAS ESCUDERO Santiago

Summary : Commissioner Dombrovskis has been invited to an Economic Dialogue, following the 15 December 2025 Economic Dialogue on the launch of the 2026 European Semester Cycle, which covered the key elements of the Commission’s package, including the Macroeconomic Imbalances Procedure, the Joint Employment Report, the Euro Area policy recommendations and ongoing efforts to strengthen the EU’s global competitiveness. This briefing first takes stock of the latest economic developments, including the impact of the conflict in the Middle East, notably through higher energy prices and their implications for the EU economy. It then provides an update on recent developments on EU fiscal surveillance, focusing on the state of play and implementation of the medium-term fiscal-structural plans (MTFSPs), draft budgetary plans for 2026, and the broader implementation of the revised economic governance framework. Finally, it covers latest developments related to the simplification package, forthcoming changes to the methodology of Country-Specific Recommendations (CSRs), and key findings from the Debt Sustainability Monitor.

Authors : SABOL MAJA, STIEBER Harald, MEHMEDI MENTOR, RUANO REMIREZ SOFIA

Summary : This briefing is prepared in view of the public hearing with the Chair of the Financial Stability Board (FSB), Andrew Bailey, scheduled for 9 April 2026 in the European Parliament’s Committee on Economic and Monetary Affairs.

Authors : MAZZOCCHI Ronny, SABOL MAJA, SPITZER Kai Gereon, RUANO REMIREZ SOFIA

Summary : This briefing provides additional economic background ahead of the public hearing of the Committee on Economic and Monetary Affairs on 8 April 2026. It complements EPRS briefings (here and here) on the recent Commission proposal on pensions of 20 November 2025, as well as on the revised regulatory framework for insurers (Solvency II) which will apply as of 30 January 2027. All initiatives aim to contribute to achieving the objectives of the Savings and Investment Union (SIU) by giving additional latitude to institutional investors on how to channel more “patient” long-term funding to growth and scale-up companies, including via investments in venture and private capital funds. The European Council conclusions of 19 March called on co-legislators to conclude negotiations on supplementary pensions by the end of the year. The current briefing provides (i) general information on the magnitudes involved; (ii) enabling conditions to be kept in mind also based on the Danish experience; (ii) a discussion of the transmission channel that has been identified between supplementary pensions and the stock market; (iv) as a form of summing up the topic a basic check list for policy makers who aim to boost domestic capital markets using this channel.

Authors : STIEBER Harald

Summary : This IA accompanies three proposals designed to support the establishment of the savings and investment union, as well as the EU's efforts to deepen capital market integration, strengthen supervision and foster innovation. Overall, the IA is meaningful, but could have been shorter, in line with the Better Regulation Guidelines. The IA identifies three problems and two drivers. While the consequences are well-defined across the different stakeholder groups, the scale and scope of the problem remain difficult to assess due to the limited quantification provided. The principles of subsidiarity and proportionality are respected. The IA defines one general objective, which it breaks down into three specific objectives, but does not provide operational objectives. The European Commission has presented two policy packages: one for reducing barriers to cross-border operations and innovation and another for addressing supervisory divergence. Each package includes two policy options. These options are based on previous research and stakeholder consultation; however, the choice of options is quite limited, even though the IA specifies which options were discarded at an early stage and why. The IA only assesses the economic impact of the proposed legislation, omitting impacts on citizens. It would have been relevant to include a wider range of impacts such as territorial or digital effects. Additionally, the costs and benefits are mainly discussed qualitatively. The IA includes an SME test and a competitiveness check. The Commission consulted a broad range of stakeholders and included their views in the IA. In addition, the IA uses robust data sources, provides a clear monitoring plan and is transparent about its limitations. The IA openly knowledges that it did not address all the Regulatory Scrutiny Board's comments, due to time and data constraints. Finally, the legislative proposals are aligned with the IA.

Authors : CAPDEVILA PENALVA Josefina

Summary : Against the backdrop of a rising U.S. federal deficit and increasing geoeconomic tensions, understanding who holds U.S. debt instruments could have important policy implications, including for the EU. This briefing provides an overview of the size and ownership structure of U.S. public debt and assesses the extent of Europe’s exposure. It further considers whether such exposure could translate into potential political leverage. The first part of the briefing outlines recent developments in the evolution of U.S. public debt, including its size, trajectory, and changing composition. The second part analyses EU Member States’ exposure to U.S. Treasury instruments. It further discusses the implications and limits of potential political leverage arising from Europe’s significant holdings of U.S. assets, highlighting the dominant role of private investors and the constraints on coordinated policy action. Finally, it considers how a possible gradual portfolio adjustment, including a gradual reduced accumulation of U.S. assets, and stronger home bias, could shape future financial flows, and how initiatives such as the Savings and Investment Union (SIU) may support a greater reallocation of European savings toward euro-denominated assets.

Authors : MEHMEDI MENTOR, RUANO REMIREZ SOFIA

Summary : The impact assessment (IA) underpins the European Commission's proposal to review the Sustainable Finance Disclosure Regulation (SFDR), which aims to enhance the implementation of the EU sustainable finance framework with simpler rules, lower administrative burden and better enforcement. The IA sufficiently explains the need for the revision of the SFDR, drawing on different data sources such as the evaluation and stakeholder consultation. While the problem definition defines and explains the problems and their drivers, some information – for example, on the estimates of the scale of the costs – is scattered across other parts of the IA. The retained policy options, linked to the defined objectives, appear to offer alternative ways to address the defined problems. The IA substantiates the choice of the preferred options package. It expects the combination of the product-level disclosures, based on simpler concepts and reduced data points, and three product categories with criteria for environmental, social and governance (ESG) claims to provide cost savings and enhance comparability of financial products, reduce greenwashing risks, and facilitate investor protection. The stakeholder consultation shows wide support for reviewing the SFDR instead of repealing it, and for the categorisation system of ESG financial products. However, stakeholders seemed to have divergent views on different measures. The SME test, conducted as the initiative is relevant for small- and medium-sized enterprises (SMEs), considered that SMEs as financial market participants would benefit from cost savings resulting from the elimination of the entity-level disclosures and other simplification measures. The IA transparently recognises and describes weaknesses in the analysis. It considers that data availability issues would be mitigated by focusing the concepts on information that is available, widely used and possible to estimate, while recognising risks in using data estimates in the absence of data. The IA explains that for the categorisation options, the efficiency analysis is only qualitative, owing to data limitations and uncertainty of costs relating to establishing product categories. The final IA, revised based on two Regulatory Scrutiny Board (RSB) opinions, seems to have made efforts to address the RSB's comments. The legislative proposal appears to follow the IA's preferred combination of options.

Authors : TUOMINEN ULLA-MARI

Summary : This briefing has been prepared for the public hearing with the Chair of the Single Supervisory Mechanism (SSM), Claudia Buch, scheduled for 18 March 2026 in the ECON Committee.

Authors : MAZZOCCHI Ronny, SPITZER Kai Gereon

Summary : This briefing has been prepared for the public hearing with the Chair of the Single Resolution Board (SRB), Dominique Laboureix, scheduled for 18 March 2026 in the ECON Committee.

Authors : MAZZOCCHI Ronny, SPITZER Kai Gereon

Summary : The Statistical Dialogue is a regular exchange between the Director-General of Eurostat and the ECON Committee, enabling its Members to engage on key statistical issues related to EU economic governance. It is based on Regulation (EC) No 223/2009, which enshrines principles of professional independence and accountability, and was reinforced by Regulation (EU) 2015/759, introducing a formal obligation for regular appearances before Parliament. This is the second Statistical Dialogue of the 10th parliamentary term.

Authors : MAZZOCCHI Ronny, SABOL MAJA

Summary : This briefing examines the European Commission’s proposal to recalibrate the EU securitisation framework within the broader context of the Savings and Investments Union (SIU). It explains how securitisation operates, why the European market remains structurally smaller than that of other major jurisdictions, and how the post-crisis regulatory architecture has shaped current market dynamics. The paper analyses the 2025 European Commission’s reform proposals to the Securitisation Regulation, the Capital Requirements Regulation (CRR) and the Liquidity Coverage Ratio (LCR) Delegated Regulation, with particular attention on implications for bank capital efficiency, lending capacity and balance-sheet management. It further assesses systemic considerations, including risk distribution, leverage dynamics and cross-sector interconnectedness. The analysis concludes that the reform constitutes a proportional recalibration within an established prudential framework, whose long-term effects will depend on supervisory consistency, market responses and the outcome of the legislative process.

Authors : IGLESIAS ESCUDERO Santiago

Authors : SANDERSKI ANDRZEJ, CROSSFIELD CLARE BABETTE, SERPIERI Margherita

Summary : This briefing provides an overview of the economic, financial, and monetary implications of US tariffs for the EU over the past year, as of the cut-off date of 25 February 2026. Given the high level of uncertainty, the analysis presented assumes a continued implementation of the EU-US framework agreement. The briefing and the analysis presented were prepared prior to the recent U.S. and Israeli airstrikes on Iran, and therefore do not take into account any subsequent market volatility or change in the underlying assumptions. This briefing updates a previous one. The first part of the briefing outlines recent developments, including the EU-US trade deal, the 20 February 2026 US Supreme Court ruling on the legality of the imposed tariffs by the US President, and the EU’s countermeasure toolkit. The second part analyses the impact on the EU economy across sectors and Member States, financial markets and monetary policy challenges.

Authors : MAZZOCCHI Ronny, LOI GIACOMO, SPITZER Kai Gereon, BECKER ĐURIČIĆ RUDI, MEHMEDI MENTOR

Summary : This briefing considers the relevance of neobanks for the Banking Union by discussing the nature of the phenomenon, its size and development so far and its prospects going forward. It also considers the benefits of neobanks along with possible challenges they pose for supervision and resolution, and for the institutional set-up of the Banking Union.

Authors : MAZZOCCHI Ronny, SPITZER Kai Gereon

Summary : This paper presents the aggregated results of a survey conducted among Members of the Monetary Policy Expert Panel (MPEP) ahead of the February 2026 Monetary Dialogue with ECB President Christine Lagarde. The opinions expressed in this document are the sole responsibility of the survey respondents and should not be attributed to the European Parliament or its services.

Authors : MAZZOCCHI Ronny, SABOL MAJA, LOI GIACOMO, MEHMEDI MENTOR

Summary : This paper assesses the ECB’s monetary policy stance and communication amid declining inflation, persistent uncertainty, and renewed external risks. It documents how trade-policy shocks and global spillovers affect inflation surprises, highlights substantial cross-country inflation heterogeneity within the euro area, and shows that common shocks generate uneven national responses. Using a novel multi-agent LLM framework, it evaluates ECB communication, revealing strengths during active policy adjustments but gaps in addressing inflation dispersion and uncertainty communication. This document was provided by the Economic Governance and EMU Scrutiny Unit at the request of the Committee on Economic and Monetary Affairs (ECON) ahead of the Monetary Dialogue with the ECB President on 26 February 2026.

External author : Laura BOTTAZZI , Carlo FAVERO , Ruben FERNANDEZ FUERTES , Francesco GIAVAZZI , Veronica GUERRIERI , Guido LORENZONI, Tommaso MONACELLI , Antonella TRIGARI

Summary : In this issue: ECB keeps key rates unchanged for the fifth consecutive time; ECB enhances repo lines for other central banks to support global liquidity and monetary policy transmission; Fed holds policy rates steady; Trade tensions have eased in the recent months; More than half of MPEP members consider the ECB’s monetary policy stance as appropriate, while around quarter find it slightly restrictive; Special focus on food inflation and labour market developments in the euro area

Authors : MAZZOCCHI Ronny, SABOL MAJA, MEHMEDI MENTOR

Summary : The ECB anticipates stable growth and inflation, while Europe is faced with geopolitical threats, lack of competitiveness and fiscal challenges. At such a time, central bankers need to consider the dynamics of risk scenarios that arise from potentially mis-aligned or mis-perceived trends and policy-relevant parameters and prepare for timely policy responses. This paper focusses on potentially unsustainable fiscal trends, potential growth misperceptions and their implications for inflation developments and the policy stance. It highlights risks for fiscal inflation in the euro area. This document was provided by the Economic Governance and EMU Scrutiny Unit at the request of the Committee on Economic and Monetary Affairs (ECON) ahead of the Monetary Dialogue with the ECB President on 26 February 2026.

External author : Henrik HEGEMANN & Volker WIELAND

Summary : This paper examines the persistent upward bias in euro area households’ inflation perceptions and expectations, even when realized inflation is near the ECB’s target. It discusses behavioural and informational drivers of this bias, its implications for consumption, wage setting, and monetary policy transmission, and the challenges it poses for ECB communication and credibility. The study concludes that improved monitoring and household-oriented communication are essential. This document was provided by the Economic Governance and EMU Scrutiny Unit at the request of the Committee on Economic and Monetary Affairs (ECON) ahead of the Monetary Dialogue with the ECB President on 26 February 2026.

External author : Peter ANDRE , Claudia SCHAFFRANKA, Michael WEBER

Summary : Makis Keravnos, Minister for Finance of Cyprus, is participating in the ECON Committee in his capacity of President of the ECOFIN Council during the Cyprus Presidency (January - June 2026). According to Article 121 of the Treaty on the Functioning of the European Union, “Member States shall regard their economic policies as a matter of common concern and shall coordinate them within the Council”. This document provides an overview of the Cyprus Presidency's priorities in ECON matters, including the Council’s work relating to the implementation of the European Semester for economic coordination, the application of the Recovery and Resilience Facility and other policy streams relevant to the EU single market, notably progress on the Savings and Investments Union.

Authors : MAZZOCCHI Ronny, LOI GIACOMO, SPITZER Kai Gereon, IGLESIAS ESCUDERO Santiago, STIEBER Harald, BECKER ĐURIČIĆ RUDI, MEHMEDI MENTOR

Summary : The European Investment Bank (EIB), part of the European Investment Bank Group (EIB Group) - which also includes the European Investment Fund, plays a central role in advancing the European Union’s investment agenda, combining substantial financing capacity with close strategic alignment to EU policy objectives. In 2025, the EIB Group achieved record levels of financing (EUR 100 billion of new financing), with particularly strong performance in climate action, energy security and economic, social and territorial cohesion.

Authors : BOEHM Lasse, VERBEKEN Dirk

Summary : This document compares the draft 2026 Recommendation for the economic policy of the Euro Area proposed by the European Commission on 25 November 2025 with the 2026 Euro Area Recommendation approved by the Council (ECOFIN) on 17 February 2026.

Authors : TURCU OVIDIU IONUT, LOI GIACOMO

Summary : This paper analyses divergences between actual, perceived and expected inflation in the euro area over the 2020-25 period. It identifies substantial inertia in both inflation perceptions and expectations, leading to cyclical biases over the inflation cycle. The analysis shows that expectations are more stable and more closely associated with economic decision-relevant beliefs than perceptions. These dynamics are linked to wage adjustment patterns and the distributional effects of inflation, while trust in the ECB remained broadly stable throughout the period. This document was provided by the Economic Governance and EMU Scrutiny Unit at the request of the Committee on Economic and Monetary Affairs (ECON) ahead of the Monetary Dialogue with the ECB President on 26 February 2026.

External author : Paul DE GRAUWE, Juemei JI

Summary : Quantum technologies have transformative potential and are already exerting a significant impact on global economies and society. The European Union (EU) supports the development of these technologies through initiatives such as the Quantum Flagship and Horizon Europe, as well as through national initiatives and programmes. However, the specific role of quantum technologies in supporting the EU's energy and climate goals has so far received limited and fragmented policy attention. This briefing explores how the emerging quantum ecosystem could help accelerate decarbonisation and address the existing innovation gap that must be bridged to achieve climate neutrality (i.e. net-zero emissions) by 2050. Achieving this goal requires technological breakthroughs in sectors that are currently difficult to decarbonise. Quantum computing has the potential to transform these areas by, for example, simulating complex molecular interactions that classical computers cannot handle efficiently. Such capabilities could fast-track the development of more efficient batteries, green hydrogen catalysts and carbon capture materials. Quantum sensing is already providing precise tools for monitoring greenhouse gas emissions, and quantum communication has the potential to secure the critical digital infrastructure of future electricity grids. Available evidence indicates that, while the EU is investing seriously in quantum research, it currently lacks a coordinated strategy linking these technologies explicitly to decarbonisation. With the European Commission expected to adopt a quantum act in 2026, policymakers have a unique window of opportunity to address this gap. By integrating long-term decarbonisation objectives into the research and innovation framework, the EU can leverage its scientific leadership to drive the next generation of clean technologies.

Authors : GUEDES FERREIRA VASCO NUNO

Authors : SANDERSKI ANDRZEJ, SERPIERI Margherita

Summary : Executive Vice-President Fitto and Commissioner Dombrovskis are invited to the 22nd Recovery and Resilience Dialogue (RRD), scheduled for 9 February 2026. The RRD is the mechanism by which the European Parliament exercises democratic oversight over the implementation of the Recovery and Resilience Facility (RRF) according to the RRF Regulation. The previous RRD took place on 24 November 2025.

Authors : SCHWARCZ András, DE LEMOS PEIXOTO SAMUEL, LOI GIACOMO, GHIRAN-MERVEILLE Anda-Diana, BECKER ĐURIČIĆ RUDI, MUNARI Ludovica, MEHMEDI MENTOR

Summary : We analyse selected RRF reforms and investments, from milestone design to payment assessment. Our findings suggest that the RRF model can strengthen the effectiveness of the European Semester by translating reform priorities into enforceable commitments. Yet there is scope for improvement. First, uneven milestone design limited conditionality in some cases, calling for a better balance between national ownership and consistency in the drafting of similar reforms. Second, investment conditionality should be recalibrated to safeguard value creation, rather than prioritising absorption. Third, decentralised implementation should not imply fragmented or restricted access to information across national systems, which constrains effective accountability and oversight. This document was provided by the Economic Governance and EMU Scrutiny Unit at the request of the ECON Committee.

External author : Miguel LEBRE DE FREITAS

Summary : Non-cash payments constitute the lifeblood of the developed economies, and a threat to their resilience is automatically a threat to wider economic resilience. The ECON Committee has commissioned two papers from members of its academic expert panel for Banking Union scrutiny in order to analyse threats to the resilience of non-cash payments and possible measures to strengthen resilience. This briefing reviews the two papers and puts forward the main lessons they offer.

Authors : SPITZER Kai Gereon

Summary : In June 2025, EU Member States that are members of NATO committed to a significant increase in spending on defence to 5% of GDP to be reached withing a decade. 3.5% of GDP would be spent on core defence items, 1.5% on defence-related items. Obviously, such commitments come on top of already tight public finances in most of the economies concerned. Against this background, in autumn 2025, the ECON Committee requested external expertise to better understand the potential synergies and tensions between security-oriented measures and competitiveness objectives, with a view to fostering effective policy scrutiny in light of the European Parliament's economic oversight responsibilities. The experts were asked to examine the economic implications of reducing dependencies in critical supply chains—including raw materials, energy, semiconductors, and defence—identifying where security-motivated investments can simultaneously enhance innovation and productivity. They were further tasked with evaluating policy frameworks to maximise positive spillovers between resilience-building and competitiveness, assessing innovative approaches to industrial policy, and providing concrete recommendations for policy design that leverages synergies whilst offering pragmatic solutions for managing unavoidable tensions. Three papers have been received: one by Maria DEMERTZIS, Alejandro FIORITO and Konstantinos PANITSAS for The Conference Board Europe and European University Institute, one by Erik JONES and Richard YOUNGS for Carnegie Europe and the Robert Schuman Centre, and one by Stefan THURNER and Peter KLIMEK for the Complexity Science Hub and Supply Chain Intelligence Institute Austria (for a comparative overview and links to the papers see the table at the end of this briefing). This briefing offers an overview of all three papers with key takeaways.

Authors : DE LEMOS PEIXOTO SAMUEL, STIEBER Harald

Summary : This briefing has been prepared for the exchange of views with the Chair of the European Fiscal Board (EFB), scheduled for 29 January 2026. It provides background information on the EFB’s mandate, and summarises the Board’s two main annual publications - the Annual Report and the Assessment of the euro area fiscal stance - as well as other relevant contributions recently published by the EFB. Further information on the EFB’s revised role within the reformed governance framework is available in a dedicated EGOV briefing.

Authors : MAZZOCCHI Ronny, LOI GIACOMO, BECKER ĐURIČIĆ RUDI

Summary : This study examines transparency in the context of the Recovery and Resilience Facility, with a particular focus on data and information availability, quality, granularity, accessibility, comparability and comprehensibility. Lessons learnt are drawn from the positive examples and shortcomings in transparency identified across National Resilience and Recovery Plans and at EU level. The study puts forward some recommendations, including the adoption of an accessible, consistent and interoperable transparency ecosystem, to enhance the accountability of future EU funding instruments. This document was provided by the Economic Governance and EMU Scrutiny Unit at the request of the ECON Committee.

External author : Christy Ann PETIT

Authors : SANDERSKI ANDRZEJ, SERPIERI Margherita

Summary : This document provides an overview of the European Parliament’s committee-level Economic Dialogues with other institutions of the European Union under the European Semester for economic policy coordination. It also lists the Recovery and Resilience Dialogues with the European Commission as undertaken by the competent committee(s) since the start of the current legislative term in June 2024, and includes an overview of the respective legal bases. During the 10th legislative term, the competent committees have so far held 6 Recovery and Resilience Dialogues and 4 Economic Dialogues with the European Commission, 3 Economic Dialogues with the Council, and 1 Economic Dialogue with the Eurogroup.

Authors : LOI GIACOMO, BECKER ĐURIČIĆ RUDI

Summary : In autumn 2025, the ECON Committee requested external expertise to better understand the evolving EU-US macroeconomic dynamics to foster effective policy scrutiny in light of the European Parliament's economic oversight responsibilities. Three papers have been received: one by Natacha VALLA and François MIGUET (Sciences Po and New York University), one by Cinzia ALCIDI (Centre for European Policy Studies, CEPS), and one by Daniela GABOR (SOAS University of London). This briefing presents the main takeaways from the three studies and, in the following sections, provides an overview of the authors’ analyses and findings structured around four key questions.

Authors : MAZZOCCHI Ronny, LOI GIACOMO

Summary : The ECB’s Governing Council set up a High-Level Task Force to recommend simplifications of banking regulation and supervision, chaired by Vice-President Luis De Guindos. On 11 December 2025, the ECB published the task force’ report. This briefing reviews and analyses the proposals and provides context in view of the ECON committee exchange of views with Vice-President De Guindos on 15 January 2026.

Authors : MAZZOCCHI Ronny, SPITZER Kai Gereon

Summary : This study assesses the evolving structural divergence between the US and EU economies, driven by widening productivity gaps and asymmetric financial integration. It identifies a “Competitiveness Trilemma” constraining EU policy responses to US industrial activism. The paper analyses new transmission channels of economic shocks and proposes a strategic playbook for the European Parliament to enhance industrial sovereignty and rebalance the transatlantic partnership.

External author : Natacha VALLA, François MIGUET

Authors : SANDERSKI ANDRZEJ, SERPIERI Margherita

Summary : The EU has developed a differentiated system of financial supervision, distributing powers among bodies such as the ECB, ESMA, SRB and AMLA. Each authority operates with distinct mandates, governance structures and accountability mechanisms. Their combined roles illustrate how the Union balances centralisation, coordination and independence to address systemic risks, cross-border challenges and financial innovation.

Authors : IGLESIAS ESCUDERO Santiago, BECKER ĐURIČIĆ RUDI

Summary : In preparation of the Economic Dialogue on the launch of the 2026 European Semester for economic policy coordination with Executive Vice-President Mînzatu and Commissioner Dombrovskis on 15 December 2025, this briefing note covers the main elements of the 2026 European Semester Package proposed by the Commission, notably the Macroeconomic Imbalances Procedure, the Joint Employment Report, the Euro Area policy recommendations and on-going work to strengthen the EU’s global competitiveness.

Authors : MARTINEZ GARZON VICTOR MANUEL, LOI GIACOMO, STIEBER Harald, BECKER ĐURIČIĆ RUDI, MEHMEDI MENTOR

Summary : This briefing reviews the initial implementation of the National Escape Clause (NEC), operationalised for defence purposes in 2025 to help accommodate higher defence spending within the EU fiscal framework. Using the evidence released in the European Semester Autumn package, it assesses how Member States responded to the new instrument, both in terms of activation and actual use of the additional fiscal room. These early developments offer preliminary insights into how such clauses operate in practice, and into their effectiveness in encouraging higher spending in specific policy areas within clearly defined rules and over relatively short implementation periods.

Authors : MAZZOCCHI Ronny, BECKER ĐURIČIĆ RUDI

Summary : This briefing analyses the implementation of the new economic governance framework in its second year of application. In particular, after discussing recent economic developments, it assesses results and roll-out of the new framework of fiscal coordination and surveillance as reported by the Commission in its 2026 Autumn Package. It also describes the current state of play on the implementation of the national escape clause for defence spending before focusing on the current excessive deficit procedures and finally assessing the governance of the new framework.

Authors : DE LEMOS PEIXOTO SAMUEL, MAZZOCCHI Ronny, LOI GIACOMO, BECKER ĐURIČIĆ RUDI

Summary : The IA is part of the second package of Commission proposals for programmes under the 2028 2034 multiannual financial framework (MFF). It acknowledges from the start that it deviates from the scope and standard IA methods defined by the Commission's better regulation guidelines and toolbox, which affects all parts of the IA. Another particularity is the fact that the IA is entirely qualitative and does not provide any quantified estimates, either for the problem definition, or for the impacts, or for the 'one in, one out' approach. The problem definition lacks coherence and substantiation. It describes in short sections a panoply of problems in the design of the broad range of current programmes and policies covered by this initiative, without clearly indicating the link between these problems, the drivers causing them, their consequences or, for that matter, the overall magnitude (and relevance) of the problems. Furthermore, the IA's objectives do not fulfil the better regulation 'SMART' criteria – they are relevant, but not specific, measurable, achievable or time-bound. The description of the limited range of options (two) is vague, because the IA does not present any specific implementation or governing measures for them. Therefore, the assessment of their impacts is also vague, as the difference between the options remains blurred. The IA focuses on regulatory impacts and does not assess economic, social or environmental impacts, or other potentially relevant impacts, such as budgetary implications or impacts on third countries. The IA does not assess proportionality. Nor does it provide monitoring or evaluation indicators in relation to the initiative's objectives. The critical comments of the Regulatory Scrutiny Board on the draft IA were only partially taken into account, at best, in the final IA. Finally, the evidence base of the IA seems limited and often unspecific, with several of the most cited sources (interim evaluations) not publicly available. The methodology and the IA's underlying assumptions are not explained, nor are potential uncertainties or limitations with the analysis, which limits the IA's transparency significantly. The legislative proposal is in line with the IA's preferred option but goes beyond the IA, which takes a general approach overall.

Authors : KRAMER Esther

Summary : This briefing provides a comparative overview of how six Member States have designed their medium-term fiscal-structural plans in the first application cycle of the reformed EU economic governance framework. Through a set of country case studies, it highlights the main approaches, methodological choices and emerging implementation issues that characterise the 2025 exercise across different institutional and macro-fiscal contexts.

Authors : MAZZOCCHI Ronny, LOI GIACOMO, BECKER ĐURIČIĆ RUDI

Summary : Escalating security threats have revealed defence dependencies that constrain choices and allow for coercion. While there has been progress on the competitiveness agenda, the EU must increase military and economic autonomy further. Industrial policy should move centre stage, drawing past lessons to gain scale and productivity and, with multilateralism stalled, bilateral trade deals are vital. Organising swiftly is needed to strengthen Europe’s standing and enable increased competitiveness. Economic security is now a first order priority for the European Union.

External author : Maria DEMERTZIS, Alejandro FIORITO, Konstantinos PANITSAS

Summary : State of play - December 2025 This document provides an overview of the public hearings of the Chair of the Supervisory Board of the European Central Bank and the Chair of the Single Resolution Board in the ECON Committee during the 10th parliamentary term (since July 2024). The briefing lists all research papers requested by the ECON Committee, which are usually provided by a standing panel of banking experts, and lists all EGOV briefings related to the Banking Union. The annex gives an overview of the respective legal bases for those hearings, which form part of the accountability framework of the Single Supervisory Mechanism (SSM) and the Single Resolution Mechanism (SRM). For an overview of public hearings during the 9th parliamentary term, please see here and here.

Authors : MAZZOCCHI Ronny

Summary : Technology now allows for complete, firm-level mapping of supply chains. The European Union can use this to build a Digital Twin of its economy, enabling it to simulate shocks, identify vulnerabilities, and enhance resilience. Developing this capability is essential for the EU’s strategic autonomy as global competitors advance similar tools. We recommend establishing a dedicated legal and institutional framework to secure the Union’s economic preparedness and competitive advantage. This document was provided by the Economic Governance and EMU Scrutiny Unit at the request of the ECON Committee.

External author : Stefan THURNER, Peter KLIMEK

Summary : This paper assesses the European Central Bank’s country-specific market-stabilisation instruments (SMP, OMT, PEPP flexibility and TPI) with a focus on the balance between rules and discretion in their design and use. While this study does not aim to provide an overall assessment of these instruments, it examines the clarity of access criteria, the impact of ambiguity in shaping market expectations, and the extent to which deployment of these tools has succeeded in reducing sovereign stress and thereby safeguarding monetary policy transmission. This document was provided by the Economic Governance and EMU Scrutiny Unit at the request of the Committee on Economic and Monetary Affairs (ECON) ahead of the Monetary Dialogue with the ECB President on 3 December 2025.

External author : Zsolt DARVAS, Francesco PAPADIA