Identifying and estimating the effects of monetary policy shocks is not straightforward. The introduction of new monetary policy tools (such as forward guidance and asset purchases) has even added new issues to the list. The article intends to shed light on the complexities at hand.

This article provides an economic reading of the EU budget and the NGEU Recovery Plan with a focus on the Belgian perspective. It examines in particular whether the new fiscal programme is a game changer for the EU or not. To what extent does the Recovery Plan boost growth, does it promote convergence between economies and cohesion between regions that have taken a bashing from the pandemic, and will it answer today’s environmental and digital challenges?

Belgian economic activity continues to recover swiftly. According to revised statistics Belgian GDP increased by 1.7 % in the second quarter. This is even better than the estimate in the previous Business Cycle Monitor (+1.3 %).

In the autumn, the European Commission will publish a proposal for updated capital requirements for banks in the EU. The NBB, as well as a large number of other national central banks and supervisory authorities in the EU, call on the European Commission to respect the letter and spirit of this global agreement.

This latest NBB study examines and maps the implicit transfers between Brussels, Flanders and Wallonia. Flanders and Brussels are net contributors, Wallonia the recipient. Are interregional transfers in Belgium high or low compared to other EU countries?

Despite a slight dip concerning all branches of activity, business confidence remains high. The indicator was down in manufacturing industry despite a further revival in the employment outlook. Entrepreneurs expressed a much less favourable opinion about stock levels and were also more reserved about the outlook for demand.