Source: European Central Bank (video statements)
Evelien Witlox, Director of the digital euro project, European Central Bank
Nico Schmidt, Team lead of digital euro user research and experimentation, European Central Bank
Fabian Geuther, Communication specialist digital euro project, European Central Bank
Source: European Central Bank (video statements)
When it comes to the risks to financial stability, things seem to have settled down a bit. But with trade tensions, an unpredictable US economic policy, geopolitical issues, a potential AI bubble and the rise of stablecoins, there is plenty to keep an eye on.
Has the global environment really become less uncertain? And how do all these factors impact financial stability?
To explore these questions and more, our host Paul Gordon speaks with financial stability expert John Fell.
The views expressed are those of the speakers and not necessarily those of the European Central Bank.
Recorded on 24 November 2025 and published on 27 November 2025.
In this episode:
01:25 How stable is the financial system?
The EU and the United States reached a trade agreement, and the economic impact of trade uncertainty has been milder than expected. But the full effects of the policy changes are yet to be seen. So, what does this mean for financial stability?
04:14 Is there an AI bubble?
The term “AI bubble” is on everyone’s lips right now . But bubbles are hard to identify and even harder to differentiate from legitimate growth. So, are valuations stretched? What about market concentration and circular funding in the AI industry? And how exactly are companies funding investment in AI?
06:15 If there is a bubble, what could cause it to burst?
There is significant leverage behind AI investments. Returns will largely depend on how widely AI is adopted. Could AI become a general-purpose technology, like the railways did?
08:15 What about the rise of private credit?
How do private credit markets differ from equity financing? Why are risks to euro area financial stability increasing as private markets expand? And how does all this relate to systemic risk in the banking sector and the build-up of AI infrastructure?
11:23 Are stablecoins really stable?
Despite what the name suggests, stablecoins carry liquidity run risks that could affect financial stability. With rapid growth and increasing links to traditional finance, what risks does this innovation create?
15:11 What’s the situation for government financing?
Governments have made progress in reducing debt levels since the pandemic. But in some euro area countries, debt remains too high and pressures to increase spending – for instance on defence – are rising. While this poses one of the biggest risks to financial stability, it could also be an opportunity for long-term growth if properly managed.
18:07 What about banks?
Given the potential AI bubble, questions around the sustainability of government budgets and the rise in stablecoins, where does this leave euro area banks? Profitability is strong and non-performing loan ratios are historically low. So, how is the banking sector doing overall?
20:13 Our guest’s hot tip
John Fell shares his hot tip with listeners.
Financial Stability Review at a glance https://www.ecb.europa.eu/press/financial-stability-publications/fsr/html/index.en.html
Financial Stability Review, November 2025 https://www.ecb.europa.eu/press/financial-stability-publications/fsr/html/ecb.fsr202511~263b5810d4.en.html
Chip War, Chris Miller https://www.amazon.de/-/en/Chip-War-Worlds-Critical-Technology/dp/1982172002
Source: European Central Bank (video statements)
💶 We’re building the digital euro to give you more choice in how you pay. It’ll be easy, private, secure – and always there when you need it.
A solution that always works, made in Europe, for everyone in Europe✨
#DigitalEuro #CentralBanking #Economy #EuroArea #EU #EuropeanCentralBank #Euro #Europe #ECB
Source: European Central Bank (video statements)
Did you know that economic violence affects 12% of women in the EU? While awareness of sexual and physical violence has grown, economic abuse is often misunderstood and remains largely in the shadows.
In this video, we explore the three main types of economic violence – control, exploitation and sabotage – and touch on what needs to be done to tackle it.
By putting the facts in focus, we take a closer look at what charts and numbers can tell us.
🔔 Remember to like and subscribe!
🔬 Sources
EU Agency for Fundamental Rights: an EU-wide survey on violence against women https://fra.europa.eu/en/publication/2014/violence-against-women-eu-wide-survey-main-results-report
Surviving Economic Abuse: Statistics on financial and economic abuse https:/survivingeconomicabuse.org/wp-content/uploads/2020/11/Statistics-on-economic-abuse_March-2020.pdf
European Institute for Gender Equality: Data collection on economic violence in the EU https:/eige.europa.eu/sites/default/files/documents/EIGE_Factsheet_EconomicViolence.pdf
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Disclaimer
The views expressed in this video do not necessarily reflect those of the ECB. The information presented is:
• of a general nature and not intended to address the specific circumstances of any particular individual or entity;
• sometimes linked to external websites over which the ECB has no control and for which the ECB assumes no responsibility;
• not intended to constitute professional or legal advice.
Source: European Central Bank (video statements)
The ECB’s seventh biennial conference on Fiscal Policy and EMU Governance is this year co-organised with the Fiscal Affairs Department of the IMF.
The conference will include a policy panel on ‘Priorities and challenges for fiscal policies in Europe’ (chaired by Piero Cipollone, Member of the Executive Board, ECB) and a keynote lecture by George-Marios Angeletos on ‘Monetary-fiscal interactions: HANK vs RANK’ (chaired by Philip R. Lane, Member of the Executive Board, ECB).
Moreover, the conference will feature the presentation and discussion of eight cutting-edge academic papers of high policy relevance. The papers address aspects of ‘Fiscal stagnation and sovereign risk’, ‘Monetary and fiscal policy interactions’, ‘Perceptions of public debt and fiscal narratives’, and ‘Geopolitical tensions and fiscal implications of war’.
Source: European Central Bank (video statements)
The ECB’s seventh biennial conference on Fiscal Policy and EMU Governance is this year co-organised with the Fiscal Affairs Department of the IMF.
The conference will include a policy panel on ‘Priorities and challenges for fiscal policies in Europe’ (chaired by Piero Cipollone, Member of the Executive Board, ECB) and a keynote lecture by George-Marios Angeletos on ‘Monetary-fiscal interactions: HANK vs RANK’ (chaired by Philip R. Lane, Member of the Executive Board, ECB).
Moreover, the conference will feature the presentation and discussion of eight cutting-edge academic papers of high policy relevance. The papers address aspects of ‘Fiscal stagnation and sovereign risk’, ‘Monetary and fiscal policy interactions’, ‘Perceptions of public debt and fiscal narratives’, and ‘Geopolitical tensions and fiscal implications of war’.
Source: European Central Bank (video statements)
The preparation phase of the digital euro was aimed at making the digital euro secure, private and easy to use for everyone.
🗓️ Here’s the timeline for the next phase:
➡️ November 2025: the next phase begins – it’s time to build the digital euro!
➡️ 2026: EU legislators decide on the digital euro Regulation.
➡️ 2027: we kick off a pilot project and the first digital euro transactions go live.
➡️ 2029: “Cash or digital euro?” could be the new question when paying.
The digital euro will give you more freedom to choose how you pay, alongside cash.
Ready for our money’s new era?
#DigitalEuro #CentralBanking #Economy #EuroArea #EU #EuropeanCentralBank #Euro #Europe #ECB
Source: European Central Bank (video statements)
🎙️ In the latest episode of #TheECBPodcast, Executive Board member Piero Cipollone talks about how the digital euro can foster innovation.
🚆 Picture this: you’ve meticulously planned your holiday – booked your train, mapped out your itinerary and secured the perfect hotel. But your train is delayed.
❓ Now, what if you only paid for the train ticket if the train arrives on time? That’s called a conditional payment – and it’s just one example of the innovations the digital euro could bring about.
Want to know more about what the digital euro offers? Check out the full episode!
#DigitalEuro #Podcast #CentralBanking #Economy #EuroArea #EU #EuropeanCentralBank #Euro #Europe #ECB
