ECB hopes to have political deal on digital euro by early 2026
FRANKFURT :The European Central Bank hopes to have all the political decisions in place by early next year to issue a digital euro and would then need two to three years to launch the currency, ECB board member Piero Cipollone said on Thursday.
The ECB has been working on a digital version of the euro for years but progress has been slower than expected, mostly because legislation is still not in place to allow the bank to proceed.
Financial upheaval in the aftermath of Donald Trump's election as the U.S. President has increased the urgency, however, as Europe relies on big U.S. firms for most digital payments, a potential financial vulnerability.
"I hope to have everything done by the beginning of next year, very early next year," Cipollone told a conference when asked about the timing of the legal framework. "We need the legislation in place, and from that, two to three years will be enough to launch the digital euro."
Unlike when they make a card payment by the likes of Visa or Mastercard, consumers paying with a digital would have a direct claim on the central bank and their funds would be similar in function and security as cash.
It would allow customers to make direct payments both in online and offline formats.
Cipollone said a key hurdle is getting a political agreement from EU member states but that could be reached before the summer. Work by the European Parliament could take somewhat longer, he added.
When asked if Trump could accelerate the process, French central bank chief Francois Villeroy de Galhau, speaking at the same event, said it enhanced the ECB's determination.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
17 minutes ago
- Business Times
Eurozone factory downturn eased in May, PMI shows
[LONDON] The downturn in eurozone manufacturing eased further in May, coming close to stabilisation as production increased for the third consecutive month and supported by a near-stabilisation in demand, a survey showed on Monday (Jun 2). The HCOB Eurozone Manufacturing Purchasing Managers' Index rose to 49.4 in May from 49 in April, marking a 33-month high and in line with a preliminary estimate but remaining below the 50 threshold separating growth from contraction. 'The upward trend in the headline PMI is still continuing, pointing towards a recovery that is progressing,' said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank. Manufacturing output increased for the third straight month, with the output index holding steady at 51.5, its joint-highest level since March 2022. New orders approached stabilisation after nearly two years of contraction, while export orders reached a 38-month high. Companies scaled back job cuts with employment declining at the shallowest rate since September 2023 while purchasing activity shrank at its slowest pace in almost three years. Among the region's economies, Greece topped the rankings with its PMI at 53.2, unchanged from April, while Spain returned to expansion with a reading of 50.5. France approached stabilisation at 49.8, a 28-month high. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'Production has picked up across all four major eurozone economies which really highlights how broad-based this recovery is,' de la Rubia added. Germany remained the weakest performer among the major economies with a PMI of 48.3, though its manufacturing sector recorded one of the softest deteriorations in three years. Manufacturers' confidence about the year ahead rebounded to its highest level since February 2022 despite concerns about potential US tariff increases on European imports. The future output index bounced to 61.6 from 58. Input costs declined for the second consecutive month with the reduction accelerating to the fastest pace in 14 months. In response, factories cut their selling prices for the first time since February. 'The ECB is getting some tailwinds for its expected interest rate cuts. The industrial sector has started cutting its sales prices again after two months of increases, giving the central bank some extra room to move forward with its interest rate cuts,' de la Rubia said. All 81 economists polled by Reuters expected the ECB to cut its deposit rate again on Thursday with a majority predicting at least one more cut after June. REUTERS
AsiaOne
2 hours ago
- AsiaOne
How Trump's trade war is upending the global economy, World News
US President Donald Trump's tariff decisions since he took office on Jan 20 have shocked financial markets and sent a wave of uncertainty through the global economy. Here is a timeline of the major developments: Feb 1 - Trump imposes 25 per cent tariffs on Mexican and most Canadian imports and 10 per cent on goods from China, demanding they curb the flow of fentanyl and illegal immigrants into the United States. Feb 3 - Trump suspends his threat of tariffs on Mexico and Canada, agreeing to a 30-day pause in return for concessions on border and crime enforcement. The US does not reach such a deal with China. Feb 7 - Trump delays tariffs on de minimis, or low-cost, packages from China until the Commerce Department can confirm that procedures and systems are in place to process them and collect tariff revenue. Feb 10 - Trump raises tariffs on steel and aluminium to a flat 25 per cent "without exceptions or exemptions". March 3 - Trump says 25 per cent tariffs on goods from Mexico and Canada will take effect from March 4 and doubles fentanyl-related tariffs on all Chinese imports to 20 per cent. March 5 - The president agrees to delay tariffs for one month on some vehicles built in Canada and Mexico after a call with the CEOs of General Motors and Ford and the chair of Stellantis. March 6 - Trump exempts goods from Canada and Mexico under a North American trade pact for a month from the 25 per cent tariffs. March 26 - Trump unveils a 25 per cent tariff on imported cars and light trucks. April 2 - Trump announces global tariffs with a baseline of 10 per cent across all imports and significantly higher duties on some of the US' biggest trading partners. April 9 - Trump pauses for 90 days most of his country-specific tariffs that kicked in less than 24 hours earlier following an upheaval in financial markets that erased trillions of dollars from bourses around the world. The 10 per cent blanket duty on almost all US imports stays in place. Trump says he will raise the tariff on Chinese imports to 125 per cent from the 104 per cent level that took effect a day earlier. This pushes the extra duties on Chinese goods to 145 per cent, including the fentanyl-related tariffs imposed earlier. April 13 - The US administration grants exclusions from steep tariffs on smartphones, computers and some other electronics imported largely from China. April 22 - The Trump administration launches national security probes under Section 232 of the Trade Act of 1962 into imports of both pharmaceuticals and semiconductors as part of a bid to impose tariffs on both sectors. May 4 - Trump imposes a 100 per cent tariff on all movies produced outside the US May 9 - Trump and British Prime Minister Keir Starmer announce a limited bilateral trade agreement that leaves in place 10 per cent tariffs on British exports, modestly expands agricultural access for both countries and lowers prohibitive US duties on British car exports. May 12 - The US and China agree to temporarily slash reciprocal tariffs. Under the 90-day truce, the US will cut the extra tariffs it imposed on Chinese imports to 30 per cent from 145 per cent, while China's duties on US imports will be slashed to 10 per cent from 125 per cent. May 13 - The US cuts the low value "de minimis" tariff on China shipments, reducing duties for items valued at up to $800 to 54 per cent from 120 per cent. May 23 - Trump says he is recommending a straight 50 per cent tariff on goods from the European Union starting on June 1. He also warned Apple it would face 25 per cent tariff if phones it sold in the US were manufactured outside of the country. May 25 - Trump backpedals on his threat to slap 50 per cent tariffs on imports from the EU, agreeing to extend the deadline for talks between the US and the block until July 9. May 28 - A US trade court blocked Trump's tariffs from going into effect in a sweeping ruling that the president overstepped his authority by imposing across-the-board duties on imports from US trade partners. The Trump administration said it would appeal the ruling. May 29 - A federal appeals court temporarily reinstates the most sweeping of Trump's tariffs, saying it was pausing the lower court's ruling to consider the government's appeal, and ordered the plaintiffs in the cases to respond by June 5 and the administration by June 9. May 30 - At a rally in Pennsylvania, Trump says he plans to increase tariffs on imported steel and aluminium to 50 per cent from 25 per cent. [[nid:718546]]
CNA
3 hours ago
- CNA
Dior picks Jonathan Anderson as creative director
Northern Irish designer Jonathan Anderson has been named creative director of women's, men's and haute couture collections of Dior, replacing Maria Grazia Chiuri who held the role for almost a decade. The expanded role for Anderson, who was made menswear designer in April, cements his status as a star of the business after his decade-long rise at Dior's parent company LVMH. Bernard Arnault, chair and chief executive of LVMH, described Anderson — son of former Irish rugby captain Willie Anderson — as 'one of the greatest creative talents' of his generation. 'His incomparable artistic signature will be a crucial asset in writing the next chapter of the history of the House of Dior,' he added. LVMH took a minority stake in Anderson's eponymous label in 2013, the same year that he was named creative director of the LVMH-owned Loewe. He transformed the reputable but staid Spanish label into one of the industry's most acclaimed fashion houses. Under Chiuri, Dior's first female creative director, sales grew quickly to nearly €8.7 billion (US$9.91 billion; S$12.77 billion) , according to HSBC estimates. In the past year, however, sales have fallen from record highs during an industry-wide slowdown. Sales at LVMH's bellwether fashion and leather goods division, which houses Dior, fell 5 per cent in the first quarter. Rising prices have contributed to consumer fatigue, as well as a sense that Dior needed some new creative impetus after the highly successful run under Chiuri and former chief executive Pietro Beccari, now in charge of luxury brand Louis Vuitton. Chiuri's departure was announced last week. 'Greedflation and lack of creativity have hit [Dior], but we believe the brand could recover with the second half of 2025 being flattish and 2026 growing again,' analysts at HSBC wrote, adding that excitement over Anderson's arrival was unlikely to help performance in the current fiscal year. Anderson grew up in Magherafelt, Northern Ireland and got his first break in fashion while working as a window dresser in Dublin's Brown Thomas department store. Considered a disrupter in the design world, his 2008 debut show for his own label JW Anderson, in which he showed a gender-fluid menswear collection of ruffled hot pants and leather dresses, was deemed a critical disaster and he considered giving up. More recent collections have demonstrated a sophisticated commercial instinct. Anderson has also taken on high-profile projects such as designing Rihanna's outfit for her 2023 Super Bowl appearance and costumes for recent Luca Guadagnino film Challengers. 'A point of view is essential in order to shape the output of a House,' said Anderson. 'I have mine, of course, regarding what Dior can be, but I am convinced that a House like this calls for an empathetic exchange.' The changes at Dior and Loewe are part of a wider reshuffle of top creative talent, as brands from Gucci to Valentino, Chanel and Balenciaga seek renewal in a tougher luxury market. Anderson left Loewe earlier this year when former Proenza Schouler designers Jack McCollough and Lazaro Hernandez were named creative directors. While the LVMH group counts Sarah Burton — formerly of Alexander McQueen — at Givenchy and Camille Miceli at Pucci among its ranks, Chiuri's departure has emphasised the lack of women in creative leadership roles across the fashion industry. Anderson will present his first collection in Paris on Jun 27. Delphine Arnault, chair and chief executive of Christian Dior Couture, said: 'I am convinced that he will bring a creative and modern vision to our House, inspired by the fabulous story of Monsieur Dior and the codes he created.'
