The Commission took important steps to reinforce the stability and predictability of the EU Emissions Trading System (ETS), announcing plans to place 190 million EU ETS allowances into the Market Stability Reserve (MSR) between September 2026 and August 2027. It also launched a consultation on u...

Using the 2022-2023 experience as a benchmark, we examine the challenge the ECB faces as it confronts a new energy-driven supply shock, reaching three main conclusions. Modern cost price transmission channels are such that even a temporary energy shock tends to produce persistent and broad-based...