2026 European Macroeconomic Report

The new European Macroeconomic Report (EMR) delves into macroeconomic risks and vulnerabilities, as well as economic challenges and opportunities for the EU and the euro area. It underpins both the Euro Area Recommendation and the Alert Mechanism Report, with the goal of simplifying and broadening the reach of these key economic assessments.

• The euro area and the EU have continued to grow amidst a complex international landscape.
• Addressing vulnerabilities is crucial for ensuring macroeconomic stability and balanced growth, including external surplus, government debt dynamics, inflation differentials and housing affordability concerns.
• High private savings in the euro area and the EU highlight the need for progress towards a genuine Capital Markets Union.
• The increase in government spending on defence capabilities is a critical dimension of the EU’s current macroeconomic landscape.
   

1. Economic landscape
2. Macro financial risks
3. EU savings in the context of geoeconomic risks
4. Macroeconomic impacts of defence spending

Information and identifiers

Institutional Paper 328. November 2025. Brussels. PDF, 80pp. Tab. Graph. Bibliogr. Free.

KC-01-25-080-EN-N (online) 
ISBN 978-92-68-34359-3 (online) 
ISSN 2443-8014 (online)
doi:10.2765/3120433 (online)

JEL classification: E0, G0, H0, J0, 03, 04.

Disclaimer

European Economy Institutional Papers are important reports analysing the economic situation and economic developments prepared by the European Commission's Directorate-General for Economic and Financial Affairs, which serve to underpin economic policy-making by the European Commission, the Council of the European Union and the European Parliament.