Maria Demertzis

Central bank} digital currencies (CBDCs), expected to become a reality in the next decade, could, in geopolitical terms, be a real game changer, bypassing the reigning dollar and euro payment systems and raising possibilities - but also dangers.

Since 2020, the EU has suffered two large shocks - the pandemic and Russia's invasion of Ukraine - that have increased longer-term fiscal pressures through higher debt and higher public investment needs. As the EU looks to address these challenges, its members are locked in a debate over how to adapt its long-standing fiscal rules to the economic reality that has emerged.