High inflation could increase equity financing

Since interest rates increase as a reaction to high inflation figures, corporations might be incentivised to turn towards equity instead of debt to finance their investments. Overall, however, investments could stagnate due to the uncertain economic outlook.

Is restrictive monetary policy doomed to ruin public finances? Not necessarily.

The European Central Bank (ECB) risks the fragmentation and collapse of the eurozone if it tightens its monetary policy by selling government bonds. That is why it should look towards restricting the money supply by increasing the capital requirements for banks, write Leonardo Becchetti and Guido Cozzi.

Europe’s central banks jack up interest rates to fight inflation surge

Central banks across Europe raised interest rates on Thursday (16 June), some by amounts that shocked markets, and hinted at even higher borrowing costs to come to tame soaring inflation that is eroding savings and squeezing corporate profits.

Market meltdown lays bare Europe’s divisions

A markets sell-off has brought back memories of the eurozone debt crisis more than a decade ago, highlighting divisions that have plagued the currency bloc's efforts to forge a closer bond.

ECB pledges new crisis tool as EU debt crisis threatens comeback

The European Central Bank promised fresh support for the bloc's indebted southern rim on Wednesday (15 June), tempering a market rout that threatened a repeat of the debt crisis that almost brought down the single currency a decade ago.

ECB gears up for ‘series’ of rate hikes to fight inflation

The European Central Bank on Thursday (9 June) ended its bond-buying stimulus and unveiled plans for a series of interest rate hikes from July, the first in more than a decade, to combat soaring inflation. The keenly-awaited announcements bring down...

With inflation on rise, ECB readies tougher action

The European Central Bank is set to announce the end date to its bond-buying stimulus on Thursday (9 June), as concerns over the accelerating pace of inflation in the eurozone grip policymakers.

Record inflation hot topic ahead of French legislative elections

Record inflation and sluggish growth threatening the purchasing power of the French are at the heart of the political debate as elections just a few more days to go before the country goes to the polls on 12 and 19 June. EURACTIV France reports.

Bulgaria’s eurozone accession debate split along Macedonian veto lines

Bulgaria's four-party ruling coalition is not united on the issue of the country's accession to the eurozone in early 2024, splitting along the same lines as with the unrelated issue of vetoing the start of neighbouring North Macedonia's EU accession talks.

Bringing a gun to trade negotiations

The chair of the European Parliament's trade committee Bernd Lange argues that the EU needs more defensive instruments to safeguard its trade interests in an environment where multilateral trade rules are not respected.

Commission gives Croatia go-ahead for 2023 euro adoption

Croatia fulfils all economic criteria to join the euro area in January 2023 despite rising inflation, according to the EU Commission’s biannual convergence report, published on Wednesday (1 June)

Sovereign debt level causes new political headache in France

While the European Central Bank (ECB) suggests that an increase in interest rates is no longer a taboo subject, the issue of reducing public debt is back on the French political agenda.

French financial sector sees ‘return to normal’ says bank governor

France's insurance sector is growing again while banks have seen a "return to normal" after the COVID-19 crisis, the governor of the Bank of France, François Villeroy de Galhau,  said on Monday (30 May).

EU leaders agree to support Ukraine financially, but postpone details

European leaders at the EU summit in Brussels on the night of 30-31 May agreed on €9 billion in macro-financial support for Ukraine and committed themselves to help finance Ukraine's reconstruction, but they postponed decisions on the nature of the support and how it should be funded.

Industry employers’ boss: Companies cannot raise wages to offset inflation

Pushed by record-high energy prices, year-on-year inflation reached 7.4% in April of this year for the euro area. This is squeezing industrial companies in Europe, according to the president of Ceemet, a European tech and industry employers’ organisation.

Mixed reactions to suspension of EU fiscal rules

While EU finance ministers meeting in Brussels on Monday (23 May) discussed the pros and cons of the EU Commission’s proposal to keep the EU’s fiscal rules suspended for another year, civil society organisations used the opportunity to question the fiscal rules more fundamentally.

EU fiscal rules to be suspended for another year

Reacting to the economic consequences of the Russian invasion of Ukraine, the European Commission postponed the renewed enforcement of its fiscal rules by a year, to 2024.

The bankers of the social economy

From the EU Commission to the European Investment Fund, banks and venture capitalists, and then social enterprises, money changes hands many times before reaching its final destination.

EU to extend budget rule suspension because of Ukraine war

Rules against overspending by EU governments will remain suspended through 2023, extending a pandemic-era reprieve because of the war in Ukraine, sources said on Thursday (19 May).

Former economy minister: Ukraine needs grants, not loans

In an interview with EURACTIV, the former Ukrainian economy minister and current advisor to President Volodymyr Zelenskyy, Tymofiy Mylovanov welcomed EU help but called for the use of grants instead of loans since an over-indebted Ukraine would scare off private investors and make reconstruction more difficult.

EU Commission proposes tax cut to incentivise equity investments

As most corporate tax systems in the EU currently prefer debt financing over equity and EU companies are highly indebted, the EU Commission proposed the introduction of a tax allowance that should incentivise the accrual of new equity rather than debt.

State of play in social economy finance in the EU

Trying to push the social economy as a flourishing sector of the economy, the EU is using a variety of ways to overcome the tension at the heart of the social economy: How do you attract money to a sector that defines itself as not being about the money?

How Portugal became Europe’s accidental ‘bitcoin heaven’

As governments slowly shackle the crypto industry with regulations and obligations, Portugal is increasingly isolated in Europe -- a place with few rules that investors describe as a crypto paradise.