The European Central Bank maintains its key interest rates at around 2% for more than half a year and this steady stance shows a commitment to a data-dependent approach amid global trade uncertainties. At the same time, euro area capital markets show cautious optimism: equity markets outperform their US counterparts in early 2025, while bond markets rebound as financial conditions ease.
Martin Kocher, governor of the Oesterreichische Nationalbank, joins OMFIF to discuss these developments and to outline how structural challenges persist, including fragmented markets and the need for deeper integration and boosting growth capital to mobilise investment for Europe’s green and digital transitions. Strengthening the capital markets union / savings and investments union is also key to sustaining growth and resilience in Europe.