EconPol Policy Reports

Cover of EconPol Policy Report 16

A Primer on Developing European Public Goods

Clemens Fuest, Jean Pisani-Ferry

The EU has mostly been defined as a provider of economic integration amongst participating member states. Its cornerstones have been the removal of obstacles to cross-border flows of goods, services, labour and capital, and the development of common policies that ensure the smooth functioning of an integrated market, be it for trade, competition, infrastructures or consumer protection, to name the main ones only. Even the euro was initially conceived as a natural complement to the internal market and as a trigger for further integration. This policy report from Clemens Fuest (ifo Institute, LMU, EconPol) and Jean Pisani-Ferry (EUI, Bruegel) discusses the case for enhanced provision of European public goods and makes a number of proposals for concrete steps and initiatives.

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Cover of EconPol Policy Report 15

Sectoral Reallocations, Real Estate Shocks and Productivity Divergence in Europe: a Tale of Three Countries

Thomas Grjebine, Jérôme Héricourt, Fabien Tripier

The creation of the European Monetary Union (EMU) in 1999 was expected to become a catalyst for real convergence in Europe. However, the authors of this policy report find that real divergence actually increased from the early 1990s, as evidenced by low productivity growth in the "periphery" of the Euro area relative to "core" countries. The report investigates the role of sectoral reallocation in this divergence, focusing on three archetypal countries: France, Germany, and Spain.

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Cover of EconPol Policy Report 14

The Surprising Sluggishness of French Exports: Reviewing Competitiveness and its Determinants

Charlotte Emlinger, Sébastien Jean, Vincent Vicard

The large deterioration in France’s current account balance during the euro’s first decade was mainly due to its poor export performances. Although there have been no more market share losses since 2012, French export growth lags behind that of our European partners. This EconPol policy report examines the continuing sluggishness of France’s trade performances over recent years, marked in particular by its surprising inability to make any significant and lasting reduction in the trade deficit or regain back lost market shares.

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Cover of EconPol Policy Report 13

How to revive productivity growth?

Cecilia Jona-Lasinio, Stefano Schiavo, Klaus Weyerstrass

Providing financial incentives for companies to invest in productivity-enhancing technologies and practices is the key to productivity growth, according to this latest policy report by Cecilia Jona-Lasinio (ISTAT and LUISS Guido Carli), Stefano Schiavo (University of Trento) and Klaus Weyerstrass (Institut für Höhere Studien). Strong investment should also be made into training and workforce skills to exploit the productivity potential of new business models in the digital economy. Competition policy, although not directly related to productivity, is also emerging as an important tool to shape incentives and foster the efficient allocation of resources both across and within sectors and firms. The report analyses the recent trends in labour and total factor productivity in the EU and beyond and identifies factors that influence productivity.

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Cover of EconPol Policy Report 11

The design of a sovereign debt restructuring mechanism for the euro area: Choices and trade-offs

Christophe Destais, Frederik Eidam, Friedrich Heinemann

This paper critically assesses several dimensions of a sovereign debt restructuring mechanism (SDRM) for the euro area, while abstaining from recommending one ideal model for a restructuring mechanism. Instead, authors apply a menu-type approach. For five key institutional SDRM dimensions, they discuss the underlying fundamental trade-offs and the pros and cons of different design choices. The analysis implies that there is no convincing reason to further taboo the search for a euro area SDRM, as there are ways to combine the opportunities of a credible SDRM with financial stability.

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