EconPol Policy Briefs

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Accountability Bonds – Reconciling Fiscal Policy Based on Market Discipline with Financial Stability

Clemens Fuest and Friedrich Heinemann

Accountability bonds revive market discipline in the Eurozone without endangering fiscal and financial stability - and they address the various concerns from difference sides. Clemens Fuest (ifo Institute) and Friedrich Heinemann (ZEW) have proposed the new type of bonds for overcoming the debt crisis in the Eurozone two years ago. In our new EconPol Policy Brief, the two EconPol network members revisit their concept of accountability bonds in the light of current developments, respond to criticism and explain why they are an innovative instrument that stand a real chance of building a consensus, now more than ever.

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Why are Macroeconomic Imbalances so Important for the European Monetary Union?

Roberto Tamborini

Are convergent growth rates a sine-qua-non condition for a monetary union? Is there any economic tendency towards this outcome? Economist Roberto Tamborini, Università di Trento, says: "Higher growth across Europe is a valuable aim but is the devotion to pro-growth and convergence policies and to the formalisation of the convergence process in Europe's Economic and Monetary Union the correct answer?

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How to Reduce Agricultural Subsidies From EU Funds

Friedrich Heinemann

“EU agricultural policy seems anachronistic. There is no justification for its dominant position in the EU budget,” says Professor Friedrich Heinemann, head of ZEW’s Research Department “Corporate Taxation and Public Finance” and author of the new ZEW study in cooperation with Bertelsmann Stiftung. The new ZEW study recommends reducing the costs of agricultural subsidies through significant national contributions to agricultural support. “If the Member States wish to privilege their farmers over other economic sectors, they should do so without passing the burden onto European taxpayers,” explains Friedrich Heinemann.

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