News Archive

News Arrows

Opinion: Sustainable Fiscal Policy Calls for More Restrictive Debt Rules for Eurozone

|
EconPol Opinion
| News
In view of loud complaints over alleged austerity policy in Europe, the call for tougher debt ceilings seems untimely. It is claimed that the current rules are too restrictive and will hamper public investment. The next German federal government's position on reforming European Monetary Union is one of the main issues on the table in the coalition negotiations and it is highly controversial. ifo President Clemens Fuest is convinced that a serious application of the existing concepts for ensuring sustainable fiscal policy would call for stricter, not softer debt rules. This Opinion explains why Europe needs stricter debt rules and should not follow in Japan’s footsteps.
... Details
News Coins

Policy Brief: Banks as Buyers of Last Resort for Government Bonds?

|
EconPol Policy Brief
| News
A key issue for the completion of the Banking Union is the concentrated exposure of banks in many countries to their own sovereign. This paper by EconPol Europe network partner Daniel Gros, Director of the Centre for European Policy Studies (CEPS), examines the belief that banks should be allowed to buy large amounts of their own sovereign so that they can stabilise the market in a crisis. Read here why this is mistaken for two reasons.
... Details
News Brexit

Policy Report: Economic Effects of Brexit on the European Economy

|
EconPol Policy Report
| News
Eight months ago, the UK Government notified its exit to the EU in accordance with Article 50 of the EU Treaty. Brexit is therefore officially initiated. One month later, the Heads of State and Government of the European Council adopted the guidelines for negotiations between the EU and the UK in accordance with Article 50 TEU. Negotiations between the EU27 and the UK on future political and economic relations have begun in July 2017 and have proven difficult since then. The two-stage structure of the negotiations foresees to substantially move forward these days. Read here what our EconPol Europe Network experts say.
... Details
News Europe

Policy Report: Economic Growth Rates Closely Aligned in Many Euro Area Member States

|
EconPol Policy Report
| News
Economic growth in many euro area countries is fairly closely aligned, while unemployment figures tend to vary more, according to the latest calculations by the EconPol Europe research network. Based on closely aligned developments across EU states between 1999 and 2014, the authors from the Munich-based ifo Institute and Brussels-based Centre for European Policy Studies conclude that state transfers aimed at stabilising Europe’s economy across national borders would only have a very limited impact. For shocks impacting the Eurozone as a whole, such a system could even trigger effects that exacerbate the crisis. “The deeper integration of capital markets would be a more effective way of helping the system to cope with economic shocks,” said ifo President Clemens Fuest, one of the co-authors of the paper.
... Details