The euro region has taken several steps to centralize banking regulation and supervision, but there is little sign that lenders are interested in seeking to merge beyond national borders. Two recent deals — one has been proposed in Spain, the other occurred in Italy — show that, for all the good…

The European Central Bank has a problem, and, no, it is not the exchange rate. The recent appreciation of the euro may have caught all the headlines, but it pales in comparison with the broader challenge the pandemic poses for monetary policy. Rather than simply talking down the currency, the ECB…

The European Central Bank’s governing council meets this week amid a less optimistic mood than before the summer break. The recovery in Europe is losing speed and there are early signs of divergence, with some euro-zone countries rebounding faster than others. ECB President Christine Lagarde…

The emergence of a handful of people reinfected by SARS-Cov-2 — including individuals in Hong Kong, Italy and the US — has sparked panic over the future course of the pandemic. It’s not difficult to see why. One of the great hopes in tackling the new coronavirus is that partial herd immunity can…

The European Central Bank is often accused of being one step behind the US Federal Reserve when fighting recessions. The Fed’s decision to revamp its monetary policy this week might leave the ECB looking off the pace again. The changes — which include moving to targeting an average rate of…

The Covid-19 pandemic has dealt a serious blow to Italy’s economy, which was already struggling with high public debt and low growth. The government now risks making matters worse: A string of high-profile interventions, the latest in Telecom Italia SpA, has the potential to scare off investors…

The resurgence of the coronavirus in Europe has reignited fears that governments will have to lock down their economies again in the autumn. Some political leaders, including President Emmanuel Macron of France, have rushed to dismiss this possibility, saying the collateral damage from a new bout…

Europe’s youth have found an unlikely hero. Mario Draghi, former president of the European Central Bank, has used his first major speech since his departure from that role to underline the plight of Europe’s youngest generations. At a time of deep uncertainty about the future, and facing…

After the euro-zone crisis, Spain emerged as a sort of model for how the monetary union’s more fragile nations might prosper. The economy expanded steadily as tight labor laws were loosened, and investors flocked to Madrid, pushing its government bond yields well below Italy’s. Subsequently,…

Politicians face a daunting decision on ending furlough schemes. They should be ruthless about zombie companies but generous to the newly unemployed. The pandemic has asked many difficult questions of Europe’s governments, from whether to close down schools to which companies to bail out. As…