“We’ll have a better sense in a few days as we publish our numbers in early June, but it’s likely we will be in between the medium and severe scenarios,” Christine Lagarde said. Photograph: AFP via Getty

The euro-area economy is faring worse than hoped, facing a recession as bad as the European Central Bank’s more pessimistic forecasts, according to pr(...)

Even investors with ample faith in the ECB’s ability to keep spreads under control worry about a populist backlash inside Italy against the lack of solidarity shown so far by EU peers. Photograph: The New York Times

Rising borrowing costs for countries such as Italy show that the European Central Bank has a fight on its hands to prevent a new debt crisis, say anal(...)

The pandemic has raised fears of defaults, financial crises and  even exits from the euro zone. The ECB can address all of these issues. Photograph: EPA

Will the euro zone survive Covid-19? If it does, it will be for the same two reasons it survived the financial crisis: fear of a ruinous break-up and (...)

A man wearing a protective suit decontaminates a primary school where a child was diagnosed with coronavirus in Thessaloniki, Greece. Photograph: Dimitris Tosidis/EPA

No country should make the “fatal mistake” of assuming it will be spared the Covid-19 coronavirus, the World Health Organisation said on Thursday, as (...)

Christine Lagarde, president of the European Central Bank, says Sweden’s monetary policy reversal does not mean that the ECB will follow suit. Photograph: John Thys/AFP/Getty Images.

It is the biggest monetary policy experiment of modern times. One that has divided economists, central bankers and politicians. But now that Sweden ha(...)

The leadership of the Single Supervisory Mechanism will change on January 1st. Photograph: Reuters

The European Central Bank’s next big appointment will cast a shadow that’s long enough to influence who succeeds Mario Draghi as president. Applicati(...)

One economist calculates that if rates remain near zero this year, inflation will see German savers losing €36 billion. Photograph: Bloomberg

German economists called on the European Central Bank on Thursday to raise interest rates after euro zone consumer prices rose faster than expected in(...)