Welcome address by Luis de Guindos, Vice-President of the ECB, at the meeting of the Council of Presidents of BusinessEurope

Madrid, 1 June 2023

Yesterday we published the latest edition of the ECB’s Financial Stability Review, which is issued twice a year. In my remarks today, I will provide you with the main findings of our analysis.

Two key developments have shaped the macro-financial environment over the past six months. First, there has been some improvement in the growth and inflation outlook since late last year. Macro-financial conditions have improved on the back of a robust post-pandemic recovery, fading global supply chain disruptions and lower energy prices. At the same time, the outlook remains fragile, given downside risks to growth and relatively sticky core inflation.

A second key recent development concerns financial turbulence witnessed this spring, with the spotlight increasingly turning on systemic risk concerns following bank failures outside the euro area….