Distinguishing between legitimate protection, protectionism remains big task: EPC head

It will become increasingly challenging in the years ahead for nations to differentiate between legitimate protection against issues related to climate change and protectionism, said Fabian Zuleeg, CEO of the European Policy Centre, at a sub-forum of the Hongqiao International Economic Forum on Tuesday.

As an important part of the 7th China International Import Expo (CIIE), the Hongqiao International Economic Forum is taking place in Shanghai in tandem with the expo from Tuesday to Sunday, attracting more than 260 distinguished guests from political, business and academic circles.

Speaking at the sub-forum titled "China and 30 Years of the WTO: History and Evolution", Zuleeg noted that climate change should not be influenced by geopolitical and geo-economic issues.

"We have to continue to emphasize that climate change is an existential issue for humanity. It is not something which should be influenced by the current geopolitical and geo-economic problems. Essentially, we are facing an exponential challenge, which every year is getting worse. And our policies are not even denting the overall trends. And that cannot go on forever. So we have to do something, to do more and to do more decisively when it comes to climate action," he said.

"The big question for me in the coming years is we have a rise both in protectionism but also in protection and legitimate protection against certain issues, including environmental degradation and climate change. So how do we distinguish between the two and make the rules enforceable and applicable, so that we can distinguish between legitimate and trade distorting? And that, I think, is a very big task for the next years," Zuleeg noted.

Distinguishing between legitimate protection, protectionism remains big task: EPC head

The European Central Bank (ECB) announced on Thursday that it would slash key interest rates by 25 basis points in a bid to wind down the restrictive monetary policy.

Effective from March 12, the interest rates on the deposit facility, the main refinancing operations and the marginal lending facility will be decreased to 2.50 percent, 2.65 percent and 2.90 percent respectively, said the central bank in a statement.

The disinflation process is well on track, with headline inflation averaging 2.3 percent in 2025, 1.9 percent in 2026 and 2.0 percent in 2027, the ECB said.

The decision to keep on cutting rates came at a time when the economy in the eurozone is facing increasing uncertainties.

In its latest edition of the staff projections on Thursday, the ECB lowered its forecast for economic growth in the eurozone to 0.9 percent for 2025, 1.2 percent for 2026 and 1.3 percent for 2027.

This marks a downward revision from the ECB's forecast in December last year, which had projected 1.1 percent growth in 2025 and 1.4 percent in 2026, while the 2027 outlook remains unchanged.

The ECB attributed the weaker growth outlook for 2025 and 2026 to declining exports and sluggish investment, citing high trade policy uncertainty and broader economic instability as key factors.

ECB cuts interest rates by 25 basis points