What This Week’s Research Says About How We Live, Move, and Breathe

A wave of new studies this week paints a vivid picture of the links between our daily choices, mental sharpness, and the changing environment — from the drinks in our hands to the fires shaping our skies.

Researchers examining beverage habits have added fresh fuel to the debate over sugary and artificially sweetened drinks. A large population study found that people who drink at least one soft drink a day — even if it’s labelled “diet” — may face a higher risk of liver damage linked to fat accumulation. The findings suggest that sugar-free alternatives may not offer the metabolic protection many expect, though the scientists behind the research caution that more evidence is needed to confirm cause and effect. What’s clear is that hydration choices remain one of the simplest ways to influence long-term health, and experts increasingly encourage swapping fizzy drinks for water or unsweetened tea.

In brighter news for those with artistic leanings, another major study suggests that creative and social hobbies may help preserve brain vitality as we age. Activities that mix movement, concentration, and imagination — from dancing and music to painting and even some strategic video games — were associated with slower signs of brain ageing. The researchers behind the work believe these experiences combine cognitive stimulation with emotional engagement, two ingredients that seem to strengthen mental resilience. Even small amounts of creative practice, they say, appear to make a difference.

While lifestyle choices dominated much of the week’s health coverage, the planet’s own well-being also entered the conversation. Scientists monitoring the Amazon basin reported that fires across South America last year released as much carbon dioxide as some industrialised nations. The destruction has pushed forest ecosystems to a breaking point and worsened air quality across wide regions, fuelling respiratory illnesses and threatening biodiversity. Experts warn that as deforestation, drought and heat waves intensify, their combined impact will increasingly be measured in hospital admissions rather than simply hectares lost.

Together, these stories highlight a shared truth: our bodies and our environment mirror each other. Whether it’s the sugar in a can, the rhythm of a dance, or the smoke from a distant forest, each choice and each change feeds into a larger system that connects human health and planetary balance. The message this week is neither alarmist nor abstract — take care of what you consume, nurture creativity, and remember that clean air and green landscapes are not luxuries, but part of what keeps us well.

Europe’s Climate Divide: How Investors Are Redefining Resilience from Oslo to Athens

Europe’s commercial real estate market is being reshaped by a force more powerful than interest rates or zoning laws: climate change. Once treated as a secondary concern, environmental risk has now become a decisive factor in how properties are financed, valued, and insured. The record-breaking heatwaves, floods, and wildfires of 2025 have made one reality clear — climate adaptation is no longer a long-term ambition but a near-term necessity.

Across the continent, however, the impact is uneven. Northern, Southern, and South-Eastern Europe are each facing distinct climate pressures, and the response from investors and developers is beginning to redraw the real estate map. Rather than being defined by geography, Europe’s property sector is now divided by its exposure to environmental risk and its capacity to adapt.

In Northern Europe, cities such as Amsterdam, Hamburg, and Copenhagen, once built around the advantages of waterways, are now contending with the threats those same waters pose. Rising sea levels and heavier rainfall have driven innovation in “amphibious architecture” and new flood-resilient infrastructure. The Netherlands, long considered a model of water management, is now experimenting with adaptable housing and elevated logistics zones. In Germany and the UK, rising insurance costs and growing flood risk are pushing investors toward higher-ground assets. Institutional funds are increasingly favouring locations with stronger infrastructure resilience and energy efficiency, while Scandinavian developers are pioneering carbon-negative buildings that blend timber construction with renewable district energy.

Further south, the story is dominated by heat and scarcity. Spain, Italy, and Greece are confronting prolonged periods of extreme temperature that are challenging the very functionality of urban areas. Developers in the Mediterranean are responding with passive-cooling architecture, solar-integrated façades, and reflective building materials. In Athens and Barcelona, rooftops once used purely for leisure are being repurposed as solar farms and green terraces that reduce indoor heat. Energy efficiency has become both a moral and a financial imperative. Properties capable of generating their own renewable energy are commanding measurable price premiums, while landlords unable to upgrade are facing the prospect of stranded assets.

In South-Eastern Europe, the challenge is even more complex. The region, spanning Croatia, Serbia, Bulgaria, Romania, and parts of Greece, faces the dual pressures of heat and flooding. In Bucharest and Sofia, outdated drainage systems are prompting developers to design elevated ground floors and absorbent landscapes to manage flash floods. Yet large segments of older building stock remain vulnerable, and limited access to ESG-aligned financing has slowed retrofitting progress. Greece, with its tourism-dependent economy, is investing in water-smart building technologies, while Serbia and North Macedonia are being pushed to modernise by the EU’s tightening environmental standards. Despite these challenges, South-Eastern Europe continues to attract capital from Austria, Israel, and the Gulf region. With yields between seven and nine percent, the market appeals to investors who see sustainability not only as an obligation but as a competitive advantage.

Financial institutions across Europe are embedding climate data into every stage of underwriting and valuation. Under the EU’s Sustainable Finance Disclosure Regulation, real estate portfolios must now reveal exposure to environmental and transition risks. Assets that meet strict sustainability standards — such as those certified under BREEAM, LEED, or the EU Taxonomy — are achieving faster financing and stronger liquidity. Older or inefficient buildings are losing value, as refinancing costs rise and insurers increase premiums for high-risk locations. Analysts have begun describing this emerging pattern as a “resilience premium,” where a building’s worth is tied to its ability to withstand heatwaves, flooding, or regulatory tightening.

Developers are responding with a growing arsenal of mitigation strategies. Dynamic climate modelling, green financing, and nature-based solutions such as living roofs are becoming common practice. Many cities are establishing partnerships between private developers and municipalities to fund adaptive infrastructure. Yet environmental campaigners warn that the current wave of climate-conscious development risks being shaped too heavily by financial interests. Groups including WWF Europe, Greenpeace EU, and Climate Action Network have voiced concern that much of the so-called green building boom still expands into previously undeveloped land or relies on high-carbon materials. At a Brussels forum this month, one campaigner remarked, “You can’t retrofit a forest,” calling for stronger regulation to ensure sustainability does not simply become a branding exercise.

Activists are also urging EU institutions to give equal priority to renovation and circular construction, ensuring that adaptation benefits older housing and low-income districts as well as premium office towers. They argue that a truly sustainable transition must address social equity as much as carbon efficiency. Without this balance, Europe risks entrenching inequality — creating cities where only the wealthy can afford to live in climate-resilient comfort.

Europe’s property market is entering a phase where adaptation itself has become the new benchmark of value. Northern Europe’s fortified waterfronts, Southern Europe’s energy-smart architecture, and South-Eastern Europe’s emerging sustainable developments together illustrate how resilience is defining investment strategy. The investors who will lead the next decade are not those chasing short-term returns but those integrating adaptability into every layer of design, financing, and community planning.

The climate divide may be widening, but it is also inspiring a new alliance between urban planners, scientists, financiers, and environmental advocates. Together, they are proving that Europe’s cities — from Oslo to Athens and Bucharest — can be laboratories of adaptation. In that shared effort lies the potential not just to protect real estate assets, but to reshape the future of how Europe builds, invests, and lives.

CIJ EUROPE Special Report – October 2025

The Cost of a Scare: How the Oktoberfest Shutdown Exposed Europe’s Festival Fragility

The world’s largest beer festival faced an unexpected test this year when a bomb threat forced the temporary evacuation of Munich’s Oktoberfest on October 1. Though police later confirmed there was no ongoing danger, the brief shutdown caused an estimated €21 million in direct losses and exposed the broader economic and logistical vulnerabilities of Europe’s major public events.

Authorities cleared the Theresienwiese festival grounds after a letter suggesting an explosive threat was discovered near the site of a fatal fire in the Starnberg district. Investigators later found an explosive device and identified a local man who was subsequently found dead, suggesting an isolated act rather than an organised attack. Still, the disruption was immediate. Tens of thousands of visitors were ordered to leave, food and drink stalls halted service, and entertainment venues shut their doors for the day.

For Munich’s economy, even a single-day closure was costly. Oktoberfest typically draws around six million visitors each year, contributing more than €1.3 billion in economic activity. Breweries, caterers, and local hotels rely heavily on the event’s steady flow of guests, and many reported sharp losses following the suspension. While the festival resumed later that evening, the incident has left organisers, insurers, and city authorities rethinking how to manage risk in an era when both physical and psychological safety drive visitor confidence.

Security experts have praised Munich’s quick response, noting that the evacuation procedures worked as intended and that communication with the public remained clear. Yet the scare reignited memories of the 1980 Oktoberfest bombing — Germany’s worst post-war terror attack — and renewed discussion about how much insurance and crisis management have evolved since.

Event organisers across Europe are now watching Munich’s experience closely. Insurers have already begun reassessing policies for large-scale gatherings, with particular attention to how security-related interruptions are classified. Industry analysts say that post-pandemic risk frameworks now require events to prove resilience against both operational and external shocks, from weather disruptions to potential security alerts. The challenge is that these protections come at a price, with premiums and compliance costs expected to rise.

Tourism officials worry that such pressures could extend far beyond Bavaria. Large-scale celebrations such as Spain’s San Fermín Festival, Italy’s Venice Carnival, or France’s Cannes events depend on consistent visitor turnout and a sense of public safety. Even short-lived disturbances, analysts note, can ripple through the travel ecosystem, influencing bookings, media coverage, and investor confidence in the leisure economy.

Still, the swift reopening of Oktoberfest showed that resilience remains a defining strength of the festival tradition. Crowds returned in large numbers the following day, and Munich officials emphasised that trust and preparedness—not fear—will guide future planning.

As Europe heads into another year of tightly scheduled cultural and sporting events, the Oktoberfest bomb scare serves as a warning and a lesson: in a global economy where perception shapes reality, protecting the spirit of celebration may now require as much investment as staging it.

CEE’s Digital Divide: The Infrastructure Catching Up to Innovation

Central and Eastern Europe’s technology sector has been expanding at an impressive pace, drawing global attention for its talent and fast-growing digital companies. Yet, as innovation accelerates, the region’s physical and digital backbone — the data infrastructure that sustains it — still lags behind. Analysts warn that without decisive investment, the region risks slowing its own momentum in the global technology race.

Across Europe, data centre development remains heavily concentrated in the West. Cities like Frankfurt, Amsterdam and Dublin continue to dominate, while many parts of Central and Eastern Europe are described as “blank spots” on the map. This imbalance limits access to the advanced computing capacity that modern industries require — from artificial intelligence to cloud platforms.

The challenge is not one of potential. The region offers favourable conditions such as cooler climates, affordable land, and an increasingly educated workforce. But slow permitting procedures, inconsistent regulations, and fragile power networks have delayed projects that could position the area as a serious technology hub.

Recent analysis from European research institutions highlights that a modernised digital infrastructure could significantly boost the region’s economy. Expanding data centre capacity and energy-efficient cloud services could unlock billions in additional annual output and create high-value jobs in cities like Warsaw, Prague, and Bucharest.

At the same time, Central and Eastern European tech firms are achieving record valuations and expanding internationally. Start-ups and listed companies in Poland, Estonia, and Czechia have been growing up to three times faster than their Western counterparts, buoyed by digital adoption and the nearshoring of tech services. But their progress exposes a gap: the ability to host, process, and secure large-scale data locally remains limited.

Governments across the region are beginning to respond. Poland is promoting green data hubs, Romania is experimenting with mixed-use “digital parks,” and the Baltics are launching new cloud cooperation initiatives. These are early steps, but experts say regional coordination will be critical to sustain progress.

The issue goes beyond technology. As Europe’s economic future increasingly depends on secure and independent digital systems, Central and Eastern Europe’s readiness will shape its competitiveness within the wider EU. Without faster upgrades in infrastructure and energy capacity, local innovators may continue to rely on Western Europe for data processing and cloud storage — a dependence that limits both control and opportunity.

For now, the region stands at a crossroads. Its entrepreneurs and engineers are proving their ability to compete globally; the question is whether the physical foundations beneath them can keep up. The race for digital sovereignty in Europe will be won not only by ideas, but by the places that can build — and power — them.

Europe’s Border Overhaul Sparks Confusion and Scams Ahead of New Travel Checks

Europe’s long-planned shift to biometric border controls is finally beginning — and with it comes a wave of confusion, misinformation, and online scams preying on travellers unsure of what to expect.

The European Union’s new Entry/Exit System (EES), which replaces traditional passport stamping with facial and fingerprint recognition, is rolling out this month. The change is part of a broader plan to modernise how Europe manages its external borders. But the transition has been rocky: delays, misleading information, and fake websites pretending to be official registration portals have already caused concern among travellers, tour operators, and data-protection advocates.

Though EES is launching in phases, its companion system — the European Travel Information and Authorisation System (ETIAS) — won’t arrive until late 2026. ETIAS will eventually require travellers from visa-free countries, including the UK, US, and Australia, to obtain pre-travel approval online. Yet despite the scheme not being active, hundreds of fraudulent websites have already emerged, charging users inflated fees or harvesting personal information under the guise of helping them “register.”

European officials have warned that no legitimate ETIAS application process currently exists. National travel bodies such as the UK’s Association of British Travel Agents (ABTA) have urged travellers to rely only on verified government channels and to avoid websites promising “express approval” or “early registration.”

The situation has also exposed how poorly many people understand what’s actually changing. Travel industry surveys show that most potential visitors to the EU are either unaware of the new biometric system or unsure of when it takes effect. This uncertainty has already prompted some travellers to postpone trips, while border posts in southern Europe have reported slower processing times as staff adjust to new equipment.

Supporters of the reforms argue that modernising Europe’s border controls is essential for improving security and efficiency. They say that once fully operational, the systems will make travel smoother and more predictable while tightening checks on potential risks. Critics, however, question whether the EU has done enough to communicate the rollout clearly. Some worry that digital-only processes could disadvantage less tech-savvy travellers or create new points of failure if systems malfunction. Privacy campaigners also warn that the large-scale collection of biometric data raises serious questions about surveillance and oversight.

The EU insists that these changes will ultimately make border crossings faster, safer, and more transparent. But for now, travellers are being urged to take a cautious, well-informed approach — check official EU websites, avoid unofficial portals, and allow extra time at airports and land borders as Europe moves into a new era of digital travel management.

Political Voices Emerge as Spy Allegations and Security Tensions Spread Across Europe

A wave of espionage and security concerns has swept through Europe this week, triggering political fallout from Brussels to Warsaw and stirring debates over trust, transparency and accountability inside the European Union. Allegations of a Hungarian-linked spy network, fresh espionage charges in Poland, and heightened terror alerts in Belgium and the Netherlands have created an atmosphere of heightened vigilance — just as NATO begins one of its most sensitive nuclear security exercises in years.

At the centre of the political storm is Olivér Várhelyi, Hungary’s European Commissioner for Neighbourhood and Enlargement, who is facing scrutiny after reports surfaced of an alleged spy network operating in Brussels during his previous diplomatic posting. The European Commission confirmed that President Ursula von der Leyen intends to raise the matter personally with Várhelyi, as pressure mounts from lawmakers and civil society groups to investigate the extent of the allegations.

“Every commissioner must uphold the highest standards of integrity and accountability,” von der Leyen’s office said in a statement that stopped short of confirming any formal disciplinary steps.

Calls for stronger institutional oversight have grown louder. Transparency International urged the European Parliament to establish a special inquiry committee, warning that if the allegations prove credible, they would represent “a serious breach of public trust and a dangerous precedent for EU governance.” A group of 60 academics from 30 European universities signed an open letter demanding that Parliament assess whether Várhelyi’s continued tenure is compatible with the EU’s ethical standards.

Meanwhile, in Budapest, Hungarian Foreign Minister Péter Szijjártó downplayed the controversy, accusing critics of “politicising routine diplomatic activities.” He did not explicitly deny the reports but framed them as “an extension of Brussels’ bias against Hungary’s independent foreign policy.”

In Warsaw, Polish prosecutors have charged a former city registry employee with allegedly helping Russian operatives obtain false identities. Investigators claim the suspect, identified as Tomasz L., illegally copied civil records between 2017 and 2022. The case, now before the courts, has been presented by Polish officials as part of a wider effort to counter Russian intelligence infiltration in the EU.

Former Interior Minister Mariusz Kamiński described the incident as “proof that Russian espionage remains active in the heart of Europe,” adding that Poland’s security services had been “dismantling networks posing as diplomatic channels.” The Internal Security Agency (ABW) said the compromised data could have been used to create “operational identities” for foreign agents across multiple European states.

In the Netherlands, far-right politician Geert Wilders temporarily suspended campaign events after Belgian authorities arrested suspects allegedly plotting attacks against European politicians. The move reflects rising unease over security coordination within the EU — particularly as cross-border threats intersect with political campaigns. Wilders, who has lived under police protection for nearly two decades, said in a statement that “the threats are constant, but this one feels more organised.”

The timing of these developments has amplified anxiety ahead of NATO’s Steadfast Noon exercise, a two-week nuclear deterrence drill hosted by the Netherlands. The operation will involve over 70 aircraft and new measures focused on protecting nuclear storage facilities amid concerns over foreign surveillance near European bases. NATO insists the exercise “is not directed at any country” but acknowledges that the “security environment is more complex than in past years.”

Together, the espionage allegations and heightened security posture illustrate the shifting geopolitical fault lines within Europe — between transparency and secrecy, sovereignty and shared governance, accountability and denial.

Von der Leyen’s insistence on “clarity and confidence within EU institutions” contrasts sharply with the Hungarian government’s defensive tone, while Poland’s firm rhetoric reinforces its identity as a front-line state in Europe’s hybrid confrontation with Russia.

As investigations unfold in Brussels and Warsaw, and NATO continues its military coordination, European leaders face a difficult balance: reassuring citizens that security and democracy can coexist, while acknowledging that espionage, influence, and mistrust are no longer distant concerns — but part of Europe’s political reality.

UK Motorists Take Carmakers to Court Over Widening Diesel Emissions Scandal

A landmark legal battle has begun in the UK as hundreds of thousands of motorists seek to prove that Volkswagen was not the only car manufacturer to manipulate emissions during testing. The collective lawsuit, one of the largest of its kind in British legal history, targets several global brands accused of using hidden software to make diesel vehicles appear cleaner than they were in real-world driving.

The case builds on the legacy of the 2015 Volkswagen scandal, which exposed the use of so-called “defeat devices” designed to lower nitrogen oxide emissions only during lab testing. While Volkswagen reached a major settlement with UK claimants in 2022, this latest action expands the allegations to include other well-known automakers such as Mercedes-Benz, Ford, Peugeot-Citroën, Renault, and Nissan. The proceedings will determine whether similar systems were used across the industry and, if proven, whether motorists are entitled to compensation.

For consumers, the case touches on both financial and ethical issues — from the potential loss in vehicle value to broader concerns about air pollution and public health. Environmental groups argue that excessive nitrogen oxide emissions from diesel engines have contributed to serious health risks across Europe, while automakers insist they followed the rules in place at the time and that their vehicles were fully approved by regulators.

Industry representatives maintain that the software under scrutiny was designed to protect engines under specific conditions, not to cheat emissions tests. They argue that the rules then in force allowed for certain temperature or load-based adjustments. However, claimants say this explanation does not excuse misleading consumers or undermining environmental standards.

The High Court’s decision is expected to set an important precedent for how emissions cases are handled in Europe. If the court rules in favour of the claimants, the outcome could open the door to billions of pounds in compensation and force manufacturers to confront questions about how they managed compliance with environmental regulations over the past decade. If the carmakers prevail, it would affirm their stance that they operated within a legal grey area created by inconsistent European testing standards.

The case also highlights wider tensions between environmental accountability and industrial power. While the U.S. swiftly imposed heavy fines and vehicle recalls following its own diesel investigations, European regulators have taken a slower, more fragmented approach. Critics say this has allowed carmakers to delay technical changes, while defenders argue that Europe’s approval system was complex and slow to adapt to new realities of emissions science.

Whatever the verdict, the trial marks a pivotal moment in the post–Dieselgate landscape. Nearly ten years after the scandal first erupted, the issue continues to test not only the integrity of global carmakers but also the credibility of regulators and the resilience of consumer protection laws.

CIJ EUROPE View:
The UK case underscores a long-running tension between technological innovation, environmental responsibility, and corporate accountability. It is not only a test of who bears blame for the diesel crisis but also a measure of how far Europe has come in aligning its legal systems with its environmental promises.

Cash Still Rules: Why America’s Payment Revolution Has Stalled

In a country known for innovation and global financial power, it remains surprisingly common for customers to be told they can’t pay by card. Across the United States, small pastry shops, family-run cafés, and local diners continue to rely on cash. The persistence of paper money in one of the world’s most advanced economies reflects deep-seated resistance to change in the American banking system.

The U.S. operates through a network of thousands of regional banks and credit unions, each with its own systems and fees. This decentralised model, while historically tied to local economic independence, has become a major obstacle to modernisation. The Federal Reserve’s FedNow service — created to enable instant money transfers — has seen limited uptake, with only a fraction of banks connected so far. Smaller institutions cite the cost and complexity of upgrading systems as barriers, leaving most payments to move slowly through outdated networks.

For small businesses, card payments have become a costly necessity. Transaction fees charged by card companies have reached record levels, eating into already thin margins. Many business owners say that for low-value purchases — a cup of coffee or a pastry — accepting cards simply doesn’t make sense. In contrast, other parts of the world have reduced transaction costs to almost zero. In Brazil, for example, digital transfers through the national Pix network are nearly instantaneous and inexpensive.

Industry groups representing card providers and payment processors have pushed hard against reforms that could reduce their profits. Proposals to cap transaction fees or require banks to connect to unified systems have faced years of lobbying and delay. Critics argue that this influence has left the United States dependent on an inefficient patchwork of private payment networks that benefit a few large players while holding back innovation.

Meanwhile, other regions are racing ahead. In Europe, instant payments are now a standard feature across much of the continent, supported by regulation that ensures interoperability between banks. In India, a government-backed digital payment platform processes billions of transactions every month, and in China, mobile wallets dominate daily life. Even smaller economies such as Thailand and Kenya have leapfrogged ahead of the U.S. in digital payment adoption.

For American consumers, the result is a slower, more expensive, and often more frustrating experience. Sending money between banks can take several days, and transferring funds abroad can involve multiple intermediaries and high fees. Even popular mobile apps like Venmo or Zelle ultimately depend on the same traditional clearing systems that prevent instant access to cash.

Efforts to reform the system are underway but face an uphill battle. The Federal Reserve hopes to expand its real-time payments network in the next year, and a handful of major banks are experimenting with digital settlement systems that use blockchain technology. Yet without a unified national approach or regulatory push, the transformation of U.S. payments may remain more aspiration than reality.

CIJ EUROPE View: The slow progress of payment reform in the United States shows how innovation can be stifled by fragmentation and entrenched financial interests. While countries across Europe and Asia have embraced digital payments as a public good, the U.S. remains caught between outdated infrastructure and political inertia. Until the system aligns around shared standards, small pastry shops will continue to rely on cash — not because they want to, but because the future of digital payments in America is still stuck in the past.

Slovakia Introduces New Insolvency Register to Improve Transparency and Efficiency

From 1 October 2025, Slovakia has implemented the Register of Pre-insolvency, Liquidation and Insolvency Proceedings, replacing the country’s former Insolvency Register. The reform is a major step in the digital transformation of Slovakia’s business and legal environment, aiming to simplify insolvency procedures, strengthen transparency, and ensure faster access to reliable data for companies and creditors.

The new register, managed by the Ministry of Justice of the Slovak Republic, operates as a single electronic platform containing all relevant information on insolvency, pre-insolvency, and liquidation proceedings. The system consolidates cases that were previously spread across multiple databases and makes them accessible online in real time. To support international users, a limited English-language interface is also available.

The register includes data on bankruptcy and restructuring proceedings, including “small” bankruptcies designed for smaller businesses, as well as preventive and liquidation procedures. Each case entry contains essential details about debtors, creditors, insolvency administrators, courts, and procedural steps such as the registration of claims, the scheduling of creditors’ meetings, and the publication of asset lists. Key documents and court decisions are also available, creating a transparent record of each proceeding.

A notable change is that all published information is now considered public and can be used directly in commercial or legal relations, without the need for additional verification. In most cases, the new register replaces the former practice of publishing insolvency information in the Commercial Journal, reducing duplication and administrative costs.

Supporters of the reform highlight several expected benefits. The centralized and digitized system should make it easier for businesses, financial institutions, and legal professionals to monitor cases and verify the financial health of partners. By offering real-time access to verified data, it helps reduce the risk of fraud, accelerates decision-making, and increases predictability in insolvency processes. At the same time, the integration of asset sales and trustee services within the platform creates a more user-friendly experience for creditors and administrators.

While the launch has been welcomed by the business community, the system’s long-term success will depend on its implementation and maintenance. Ensuring regular updates, training court staff and administrators, and maintaining interoperability with EU systems will be essential for the register to deliver on its promise of speed and efficiency.

The Register of Pre-insolvency, Liquidation and Insolvency Proceedings is one of Slovakia’s most important legal digitalization initiatives in recent years. If successfully adopted, it could strengthen trust in the country’s legal and business environment, making it easier for companies to assess risk and participate in insolvency procedures with greater confidence. Over time, it may also enhance Slovakia’s standing within the EU as a country committed to transparent and predictable commercial practices.

G20 Progress Report: Cross-Border Payment Reform Faces Delays Despite Policy Milestones

The Financial Stability Board (FSB) has released its 2025 Consolidated Progress Report on the G20 Roadmap for Enhancing Cross-Border Payments, showing that although many regulatory and technical milestones have been achieved, practical improvements in cost, speed, transparency, and access remain limited.

The G20 initiative, first launched in 2020, set an ambitious goal to make international payments faster, cheaper, and more transparent by 2027. Five years later, the FSB’s assessment suggests that while the global policy framework is largely in place, real-world impact for consumers and businesses has been modest.

The report highlights notable advances, including efforts by the Financial Action Task Force (FATF) to harmonise anti–money laundering standards and the expansion of ISO 20022 messaging protocols across key payment systems. The Committee on Payments and Market Infrastructures (CPMI) also coordinated measures to extend RTGS system operating hours and reduce cross-border frictions between banks and non-bank payment providers.

However, the FSB notes that the average cost of sending remittances still exceeds the United Nations’ target of 3 percent per transaction. Retail remittance corridors in Africa and South Asia remain among the most expensive, while in many low-income countries access to fast and affordable digital payment options is still limited.

The report attributes the slow progress to inconsistent national regulations, fragmented capital control frameworks, and the limited reach of interoperable payment infrastructure. “Much of the design work is done — implementation now lags behind,” the FSB stated.

Regional Perspectives

In Europe, the push toward real-time payments and harmonisation of financial messaging standards has placed the region among the global leaders in payment system integration. The EU’s Instant Payments Regulation, coupled with the Single Euro Payments Area (SEPA), continues to expand coverage, although cross-border adoption beyond the eurozone remains uneven.

In Asia, rapid advances are being made through regional connectivity projects. Initiatives such as Project Nexus, led by the Bank for International Settlements (BIS) Innovation Hub, are linking national instant payment systems across ASEAN countries. Singapore, Thailand, and Malaysia are already operational under this model, with Japan and India expected to join by 2026.

In Africa, progress has been slower but promising. The Pan-African Payment and Settlement System (PAPSS) — launched under the African Continental Free Trade Area (AfCFTA) — is facilitating cross-border trade in local currencies, reducing reliance on the US dollar. However, inconsistent regulatory environments and weak infrastructure continue to hinder scale.

The Americas present a mixed picture. While the US and Canada have advanced digital clearing systems, cross-border transactions between North and South America remain costly. Latin American countries such as Brazil, through its PIX instant payment system, are now exploring bilateral connections with Mexico and the Caribbean.

Looking Ahead

The FSB points to emerging technologies such as Project Agorá, which explores tokenised central bank money for cross-border settlements, and the World Bank’s FASTT programme, which supports over 60 countries in modernising payment infrastructure. These could become pivotal to bridging current gaps if broadly adopted.

However, the report warns that achieving tangible results requires “national-level action and private sector engagement.” Greater alignment between financial institutions, regulators, and technology providers will be essential to delivering on the G20’s 2027 targets.

By prioritising collaboration and ensuring equitable access to technology, the FSB believes the roadmap could still succeed in transforming how money moves across borders — but only if the next two years deliver visible, measurable change.

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