In this paper, we rely on a comprehensive dataset of European commercial banks from the ORBIS Database spanning from 2014 to 2022 and use an unconditional quantile regression to investigate the driving factors of profitability. By controlling for several bank-related factors, we aim to capture the influence of economic support measures on banking profitability as measured by the ROA. The major finding of the paper brings to light the negative impact of economic support measures on bank profitability, especially for banks associated with the lower and middle quantiles of the distribution of the ROA. This suggests that while government interventions are essential during economic downturns such as the COVID-19 pandemic, their impact on banking sector productivity is more complex. Indeed, when the government provides more intensive economic support in the form of direct subsidies, grants, or tax exemptions, it reduces the immediate dependence of economic agents on bank loans. If these entities receive funds directly from the government, their propensity to borrow from banks drastically decreases, resulting in a reduction in their interest income and other financial services.

This paper contributes to the literature dedicated to the interlinkages between cryptocurrencies and currencies by investigating whether Bitcoin price movements affect the exchange rates of a sample of nine European countries with non-euro currencies. By resorting to the novel unconditional quantile regression, we show that there is a statistically significant link between Bitcoin price movements and changes in nominal exchange rates. In normal market conditions, an increase in the price of Bitcoin can be associated with an appreciation of the currencies from our sample, while during the COVID-19 pandemic, the relationship inversed. In addition, we find heterogeneities in this relationship, depending on the level of change in the nominal exchange rate. The results emphasize the relevance of Bitcoin price movements to the conduct of monetary policy through the exchange rate channel and that investors in cryptocurrencies and various financial assets denominated in the currencies from our sample can benefit from diversification by including both types of assets in their portfolios.

This paper investigates how geopolitical risk influences firm profitability worldwide. Using a global panel of 7126 listed companies from 2013 to 2023, the analysis reveals that geopolitical shocks do not affect firms uniformly. Less profitable and financially fragile firms experience the strongest declines in profitability when geopolitical tensions rise, while more profitable firms show greater resilience and, in some cases, strategic gains. The results also indicate that financial structure, liquidity, tangibility, and innovation capacity explain much of this heterogeneity, highlighting that vulnerability is rooted in both balance sheet fragility and adaptive capability. These findings suggest that geopolitical instability reinforces performance asymmetries across firms and industries, with implications for corporate strategy, investor behavior, and financial stability in an increasingly uncertain global environment.

In the history of contemporary economies, increasingly frequent crises and rapid technological transitions have favored the emergence of periods of uncertainty that have required conjunctural adaptations and strategic reconfigurations, often directly targeting fiscal-budgetary policy, respectively the fiscal consolidation process. In this context, the paper aims to analyze the issue of fiscal-budgetary consolidation in periods in which economic and social uncertainty are prominent, with an emphasis on maintaining a certain balance between budgetary sustainability and social equity. A complex approach is proposed to overcome the exclusively numerical vision, percentages, and aims to integrate economic and social dimensions. It also aims to capture national experiences (Greece, Romania, Germany, Portugal, Hungary and Bulgaria) and integrate the main theoretical paradigms (Keynesianism, neoliberalism, social justice). The results lead to the conclusion that the efficiency of consolidation depends on the state's capacity to ensure the balance between fiscal discipline and social equity.