Europe faces the difficult task of simultaneously bringing down inflation, sustaining economic growth, and preserving financial stability.
Economic growth has tumbled across Europe, inflation remains too high, and financial sector risks have materialized. Taming sticky inflation while avoiding financial stress and a recession will require tighter macroeconomic policies—tailored to changing financial conditions, stronger financial regulation and supervision, and bolder supply-side reforms that heal scars from the COVID-19 and energy crises.
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December 2025
Finance & Development
- More Data, Now What?
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