Geopolitical risk is a key concern for the euro area, yet most available measures reflect a US perspective. This column introduces a new indicator of geopolitical risk tailored specifically to the euro area, based entirely on newspaper coverage from local sources. The authors show that shocks to this index have significant recessionary and inflationary effects, even when controlling for ‘global’ geopolitical risk. For anyone seeking to assess geopolitical risk in Europe, this euro area

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