Monthly PMI Bulletin: Global economic growth slows amid subdued confidence

ECB'S VILLEROY: IF THE BUDGET DEFICIT WERE TO BE HIGHER THAN 5% IN 2026, FRANCE WOULD ENTER THE DANGER ZONE

ECB De Guindos: Inflation Remains In A Good Place - Geopolitical Risk Noticeably Raises Downside Risks To Growth - Financial Stability Risks Remain Elevated As Valuations Are Stretched In Increasingly Concentrated Asset Markets De Guindos: Monetary policy and financial stability in the euro area The global economy is facing a period of profound transformation and heightened uncertainty. The past year has brought major shifts in the international economic environment, driven by significant changes in US policy and the erosion of the multilateral, rules-based system which has long supported global trade and international relations. The introduction of substantial tariffs on US imports has disrupted trade flows, weakened confidence and created ripple effects across economies. Geopolitical risks remain elevated. The shift to a new paradigm – one where rule of law principles are challenged – reflects profound global uncertainties that are likely to persist. These developments have had tangible implications for economic activity and financial stability in the euro area. Heightened uncertainty weighs on growth prospects through two main channels: by delaying firms’ investment decisions and so affecting euro area exports, and by prompting households to increase precautionary savings and consume less than expected. At the same time, fiscal policy in several euro area countries is set to ease to accommodate higher spending, including for