The European Central Bank (ECB) published its semi-annual Financial Stability Review on 20 November 2024. It provides an overview of potential risks to financial stability in the euro area.

The key conclusions are:

• Risks to financial stability in the euro area remain elevated in a volatile environment.
• Economic growth remains fragile and concerns about the outlook for global trade are adding to geopolitical and political uncertainty.
• High valuations and pronounced risk concentration make markets more vulnerable to sudden corrections.
• Political uncertainty, weak fiscal fundamentals in some countries and low potential growth raise concerns about the sustainability of public debt.
• The importance of macroprudential policies to strengthen the resilience of the financial system in the current uncertain macro-financial environment is emphasised.