In the context of the initiatives under the Capital Markets Union action plan, the JRC has provided analyses on a variety of topics of relevance in the understanding of bottlenecks hindering as well as factors enabling full financial integration in Europe. Examples are the assessment of the cost of withholding taxes on cross-border portfolio investment, the analysis of the venture capital markets and the evaluation of firm financial vulnerabilities in the wake of the COVID-19 shock.
The JRC also supports partner DGs in the effort of assessing risks for the financial sector, based on statistical analyses, as well as computational and econometric models. The JRC research agenda covers the functioning of financial markets, as well as financial institutions and related micro- and macro-prudential tools.
Finally, since the launch of the EC Action Plan on Financing Sustainable Growth in 2018, the JRC has provided scientific evidence supporting the development of the EU Sustainable Finance framework, in relation to both the financing sustainable activities and the resilience of the financial system to sustainability-related risks. In parallel, the JRC is also developing research on challenges related to Digital Finance, such as fintech, cryptoassets and central bank digital currencies.
What we do
Sustainable finance involves considering environmental, social and governance (ESG) factors when making financial investments to support a more sustainable economy. The JRC uses its scientific and technical expertise to support policy development in sustainable finance and economy.
Digital finance is all about harnessing the power of digital technology to improve traditional financial systems, enhancing efficiency, accessibility, and spawning innovative financial products and services.
The JRC conducts research on financial stability: links between banks and sovereigns, risk contagion, regulatory impacts. We use the SYMBOL model to simulate and assess crises and explores sustainable debt instruments for public finance management.
To support policy design on insolvency and SME financing, the JRC analyzes firm-level data to assess financial vulnerabilities in the corporate sector, focusing on challenges like the green transition, climate risks, and post-pandemic recovery.
