Frankfurt (Germany), May 21 (LaPresse) – Uncertainty surrounding tariffs could destabilize markets, with potential impacts on households in the Eurozone, as well as on banks and non-bank credit institutions. This is highlighted by the European Central Bank (ECB) in its May 2025 Financial Stability Review, published today. The ECB notes that “a sharp increase in uncertainty in trade, defense, international cooperation, and global regulatory policies could pose a challenge to financial stability.”
“Frequent changes and reversals in tariff policy, combined with significant shifts in the geopolitical landscape, could have major economic and financial repercussions. While global macroeconomic imbalances remain a longstanding issue in policy debate, it is unclear whether tariffs are the most appropriate policy tool to address them,” the ECB report says. “Rising trade tensions and downside risks related to economic growth are affecting the outlook for financial stability,” said ECB Vice President Luis de Guindos.
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