AD€ Info - May 2025 Newsletter

Parliament :

Budget priorities for 2026

On 2 April, MEPs adopted guidelines for the EU budget for 2026 by 441 votes to 173, with 70 abstentions. The budget should focus on defence, security, competitiveness and sustainability, as well as on the digital and green transitions. It should also strengthen cyber security, support farmers and improve dual-use infrastructures. MEPs stress the importance of supporting Ukraine and guaranteeing sufficient resources to avoid debt repayment cuts. The 2026 budget is crucial to maintaining stability in the face of geopolitical and climatic challenges.

Amendments to European directives on corporate sustainability

Advice :

Meeting of the Eurogroup and the finance and economy ministers

On 11 April, the President of the Eurogroup, Paschal Donohoe, underlined the ministers' unity in the face of developments in the global economy, ahead of the spring meetings of the IMF and the World Bank. On 11 and 12 April, the finance and economy ministers reaffirmed their commitment to a rules-based trading system, the single market, and key projects such as the digital euro and the savings and investment union. They also discussed defence funding.

ECB :

The digital euro at the service of Europe's strategic autonomy

Speaking at the European Parliament on 8 April, Piero Cipollone, member of the Executive Board of the European Central Bank, stressed the importance of the digital euro project for strengthening Europe's strategic autonomy. At a time when payments are largely dependent on non-European players, the digital euro would offer a sovereign, secure, accessible and complementary alternative to cash. It would enable consumers to pay anywhere in the eurozone, including offline, while protecting their privacy. The project is progressing according to schedule, with innovative legislation and partnerships being developed.

Key rates cut in the face of falling inflation

On 17 April, the ECB governors decided to cut the three key interest rates by 25 basis points. The rate on the deposit facility will thus fall to 2.25 %, that on the main refinancing operations to 2.40 % and that on the marginal lending facility to 2.65 %, with effect from 23 April. This decision reflects an updated assessment of disinflationary dynamics and monetary policy transmission. The ECB is maintaining a cautious, data-dependent approach in the face of an economic environment marked by growing trade tensions and high uncertainty.

Studies and reports :

The European Court of Auditors denounces the opacity of NGO funding

In a report published on 7 April, the European Court of Auditors criticised the transparency of EU funding to NGOs, which received €7.4 billion between 2021 and 2023. The information is fragmented and unreliable, particularly with regard to the activities funded. According to the Court of Auditors, the European Commission does not verify
the respect of values by these organisations. Although progress has been made, the situation remains unclear, hindering accurate analysis of the funds and their impact. The report highlights the need to improve transparency in the management of this funding.

Albania :

Conference on accession in Luxembourg

The 4th meeting of the Accession Conference with Albania was held in Luxembourg on 14 April. The meeting opened negotiations with Albania on the 2nd group of chapters concerning the internal market, after concluding negotiations on the "fundamentals". The transposition of the European acquis, divided into six thematic groups, is a prerequisite for accession to the European Union, for which Albania has been a candidate since 2014.

FMI :

Global slowdown and increased financial risks

In its Global Financial Stability Report published on 22 April, the IMF warns of a slowdown in world growth, expected to reach 2.8 % in 2025, due to trade tensions, in particular the generalised customs duties imposed by the United States. This uncertain backdrop is exacerbating financial vulnerabilities, with asset valuations still high, increased indebtedness among non-bank institutions, and pressure on bond markets, especially in emerging countries. In addition, geopolitical risks such as conflicts are increasing market volatility and undermining macro-financial stability. The IMF is calling for international coordination, structural reforms and proactive risk management to contain these threats.

Source: "The Robert Schuman Foundation Letter".

https://newsletter.robert-schuman.eu

Jean-Luc LEFEBVRE