ESM - European Stability Mechanism

How does the ESM work to keep the #euro safe? Watch below for a quick tour to learn more about the rescue fund 👇 #ESMeuro #stability

🇬🇷🎙️ How can Greece make sure the economic performance of recent years remains sustainable in the years to come? In his interview with John Papageorgiou from Athens Radio, ESM's country coordinator for Greece Paolo Fioretti runs through the needed reforms to face future challenges: 🔹 The government must continue its reform agenda in order to maintain economic growth and increase productivity. 🔹 The Recovery and Resilience Plan is a game changer for the Greek economy. Focus on implementation should remain a priority. 🔹 Work should be done on a more inclusive job market to address low female and youth participation rates, especially in light of an ageing population. To find out more: https://lnkd.in/dUTAgBnY

Paolo Fioretti, mission chief for Greece, ESM - European Stability Mechanism, at the Economist Impact's 28th Annual Economist Government Roundtable #EconRoundtableGR

We were honoured to host policymakers, economists, and researchers for ESM's second “Economic Modelling in Policy Institutions Workshop” on 4 - 5 July. 💬 Over two days, we explored the latest economic and financial modelling advancements and fostered intellectual exchange about models’ limitations and uncertainties. We covered: 👉 Fiscal and monetary policy interaction 👉 Financial stability implications of fragmentation 👉 Demographic trends and natural interest rate 🙏 Thank you to our keynote speakers Marco Del Negro (Federal Reserve Bank of New York), Marie Hoerova (European Central Bank), and Marco Ratto (European Commission), for their insights, and to all colleagues who submitted papers and discussants. #ESMeuro Photos: Peter Lindmark

💶 How much will it cost to avert the worst of climate change? Climate experts agree that figure is in the billions of euros. In Europe alone, meeting zero carbon emission targets by 2030 would require at least €174 billion per year. 💶 Where will the money come from? In the latest #ESMBlog, ESM Principal Portfolio Manager Carlos Eduardo Martins and Senior Advisor to the Chief Economist Wim Van Aken, argue that completing EU Banking Union and Capital Markets Union could achieve efficiencies that attract the private sector and investors to close the gap. Read the blog for more https://lnkd.in/eN3AmfXx #sustainable #CMU #Europe #ESMeuro

🏛️ Can banks pave the way to future growth in Greece? In the last financial crisis, banks were part of the problem, but this has changed. Banks now stand in a better position to contribute to Greek growth. They have: ✔️ Better capital structures; 📉 Reduced their non-performing loans; 💪 Strengthened their profits thanks to interest rate increases. Bank profitability, together with the recent return to investment grade and the continued fiscal discipline, has created a virtuous cycle that can boost the Greek economy. However, strategy also matters. Banks should use their increased profitability to continue to clean their balance sheets, invest in new technologies, and adapt their business models. Watch ESM Deputy Head of Financial Sector and Market Analysis Paolo Fioretti's intervention at the 28th Economist Annual Government Roundtable by Economist Impact SE Europe Events: https://lnkd.in/eB5QBFUz #EconRoundtableGR #ESMeuro Photo: V Creative Lab

Last week, the ESM staff gathered near Schengen and went down the Moselle river on the MS Princesse Marie-Astrid. 📍Schengen is a small village and commune in south-eastern Luxembourg on the Moselle. It is in this modest location where 🇩🇪 🇫🇷 🇱🇺 meet. 🇪🇺 It is also where the Schengen Agreement was signed on the MS Princesse Marie-Astrid on 14 June 1985 and the Schengen Convention in 1990. The Schengen Agreements formed the Schengen Area, where people can travel freely between 29 European countries today. 🇱🇺 As a Luxembourg-based institution serving the euro area, this history is particularly special for us. ⛴️ With Germany on one side of the Moselle and Luxembourg on the other, we are reminded of our connectedness, over and above our cultural identities. We are called to reflect upon our relationship to uncertainty and our purpose of making a difference. We remain steadfast in and committed to our common cause of protecting financial stability in the euro area, ever so relevant in an increasingly fragmented geopolitical world. Photo: Peter Lindmark

📰 ”The ESM is part of the multilateral layer of the global financial safety net, which consists of the International Monetary Fund and the regional financing arrangements. In times where political discourse becomes more difficult, keeping that cooperation is a sign of strength and certainty”. ESM Chief Economist Rolf Strauch stated in an interview with Kandy Wong from South China Morning Post SCMP. They also addressed: 📊 The three mega trends affecting the global economy ⚠️ Financial stability risks 🌍 The European and global economic outlook Read the full interview: https://lnkd.in/edmatHHv

🦋 Do you know what the butterfly effect is? It means that tensions on one side of the world can affect the other side of the globe. In other words: what happens in other regions of the world, can impact the euro area economy, for example impairing trade routes. European trade in goods strongly relies on shipping, making up over 70% of both imports and exports in 2023. Geopolitical frictions currently affect vital shipping routes – the Red Sea, the Strait of Hormuz, and the South China Sea – thus clearly present a threat for supply chains and hence, growth. Our colleagues Angela Capolongo and Michael Kühl estimated the impact of geopolitical conflicts on trade in our latest #ESMBlog. Read their full analysis https://lnkd.in/eBK2pr3p #ESMeuro

🌍🔍 Who picks up the bill when natural catastrophes happen? ESM Head of Economic Risk Analysis Giovanni Callegari recently addressed this question when he spoke at the event, “ESG and climate risk management framework for the financial sector”, co-organised by WU Institute for Ecological Economics and SUERF - The European Money & Finance Forum. Some key takeaways: 🔑 Extreme climate-related physical events and higher probability of compound events increase the burden on governments if there is an insurance gap. 🔑 Shared solutions among private sector, public sector and investors are the way forward to preserve insurance coverage while minimising the impact on public finances. 🔑 By reducing the cost of uncertainty, a European backstop could boost private schemes and thus overall insurance protection against natural catastrophe risks. 🔑 The European backstop can be fiscally neutral, when it is paid back by the industry, and avoid a burden on taxpayers. Still curious? ➡️ Find the recording of this event https://lnkd.in/d2TaKijR ➡️ See his slides https://lnkd.in/d-kN6_5r ➡️ Read the #ESMblog on the insurance protection gap https://lnkd.in/diiiiMc7