| EconPol Policy Brief
Import tariffs introduced by the United States and China in September will see Chinese exporters bear approximately 75% of the costs, with the US extracting a net welfare gain of USD 18.4 billion, according to new research from EconPol Europe. The tariffs affect around 50% of Chinese products imported to the US, with a value exceeding USD 250 billion. The tariffs introduced by China affect around USD 60 billion worth of goods. The research shows these new tariffs, introduced on 24 September, will increase US consumer prices on affected Chinese products by an average of 4.5%, while the producer price of Chinese firms declines by 20.5%. ...Details
| EconPol Brief
The lack of cross-border risk sharing in the banking sector is one of the biggest barriers to better integrated financial markets in Europe. In this EconPol policy brief, the authors emphasize the potential of the securitization market for bank-based financial integration. To effectively increase cross-border risk sharing through securitization in the EU, they suggest further improving the existing regulatory framework in order to reduce barriers to a thriving securitization market. A further recommendation is to introduce explicit incentives for risk sharing, and securitization in Europe entering EU regulation and EU programs. ...Details
| Opinion
The agenda to fix the euro is hampered by conflicting national interests. Creditor countries demand fiscal house cleaning and debtor countries ask for risk sharing. There is currently a political deadlock about how the adjustment burden should be distributed, perpetuating a state of vulnerability that is not in the collective interest of euro area members. This column, part of the Vox debate on euro area reform, argues that overcoming this coordination failure requires reforming the political governance of the EU, rather than just its economic governance. ...Details