Panel Discussion: The US Election: What Impact on EU-US-Asia Trade Relations?

EconPol Europe Annual Conference 2020: Balancing New Challenges: Sustainable and Inclusive Growth in Europe

25-26 November 2020

Hosted by Jennifer Baker, with: Anna Ashton, Senior Director for Government Affairs, US-China Business Council Rüdiger Bachmann, Professor of Economics, University of Notre Dame Lisandra Flach, Director of the ifo Institute Center for International Economics Marie Kasperek, Executive Director, Institute of International Economic Law, Georgetown Law; Non Resident Senior Fellow, Atlantic Council

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Panel Discussion: Balancing New Challenges and Sustainable and Inclusive Growth for Europe

Hosted by Monika Jones, with: Agnès Bénassy-Quéré, Chief Economist at the French Treasury Ivan Faiella, Senior Economist, Banca d’Italia Jörg Kukies, State Secretary at the German Federal Ministry of Finance Piroska Nagy Mohacsi, Interim Director of LSE's Institute of Global Affairs

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Johannes Hahn Keynote Speech: How to Safeguard Sustainable Financing for the EU

Johannes Hahn (Commissioner of Budget and Administration) delivers the keynote speech of the conference, and outlines his priorities for a smooth and swift transition to the long-term EU budget for 2021-2027: economic recovery, resilience, and readiness for the green and digital transition. Commissioner Hahn is joined in conversation by Clemens Fuest, EconPol's chief spokesperson and president of the ifo Institute, where they both answer questions from host Monika Jones.

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Abstract arrows image illustrating debt

The Insurance Properties of Common Debt Issuance

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Policy Report
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The cost of public debt increases more than proportionally with the debt/GDP ratio. This convexity has one immediate implication in the presence of uncertainty about growth: the average social cost of public debt is higher than the contractual debt service cost embedded in the interest rate. In this EconPol policy report, Daniel Gros explains how Common European debt, which is financed by a pro-rata levy on the output of member states, provides an insurance function because countries which grow less have to contribute less (and vice versa).

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Cover of EconPol Policy Report 28

The Insurance Properties of Common Debt Issuance

Daniel Gros (EconPol Europe, CEPS)

The cost of public debt increases more than proportionally with the debt/GDP ratio. This convexity has one immediate implication in the presence of uncertainty about growth: the average social cost of public debt is higher than the contractual debt service cost embedded in the interest rate. In this EconPol policy report, Daniel Gros explains how Common European debt, which is financed by a pro-rata levy on the output of member states, provides an insurance function because countries which grow less have to contribute less (and vice versa). This insurance function becomes more important the longer the horizon and thus the uncertainty about (relative) economic performance.

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European Central Bank

Explained: the Insurance Properties of Common Debt Issuance in the EU

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EconPol Opinion
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The Covid-19 crisis has led to a common European fiscal response in the form of the €750 billion Next Generation EU (NGEU) package agreed by EU leaders in July 2020. One important novelty of this package is that it will involve, for the first time, the issuance of substantial common European debt - Daniel Gros explains what this means for the EU and its Member States.

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EU map and flags

COVID-19, Trust and Solidarity in the EU

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Policy Report
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Recent evidence suggests that individual traits such as social capital are key determinants of how well the Covid-19 pandemic can be contained. It has been widely argued that the success of governments’ policies will be determined by trust and, at the same time, the pandemic itself is likely to affect trust, attitudes towards institutions and solidarity.

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Cover of EconPol Policy Report 27

COVID-19, Trust and Solidarity in the EU

Cevat Giray Aksoy (European Bank for Reconstruction and Development and King’s College London), Antonio Cabrales (EconPol Europe, Universidad Carlos III de Madrid), Mathias Dolls (EconPol Europe, ifo Institute), Lisa Windsteiger (Max Planck Institute for Tax Law and Public Finance)

Recent evidence suggests that individual traits such as social capital are key determinants of how well the Covid-19 pandemic can be contained. It has been widely argued that the success of governments’ policies will be determined by trust and, at the same time, the pandemic itself is likely to affect trust, attitudes towards institutions and solidarity. This experimental study by Cevat Giray Aksoy (European Bank for Reconstruction and Development and King’s College London), Antonio Cabrales (EconPol Europe, Universidad Carlos III de Madrid), Mathias Dolls (EconPol Europe, ifo Institute) and Lisa Windsteiger (Max Planck Institute for Tax Law and Public Finance) into the impact of Covid-19 looks at levels of trust among people and public institutions across Europe. The authors surveyed people in France, Germany, Greece, Hungary, Italy, the Netherlands, Poland, Spain and Sweden to examine the effects of the virus on social trust, reciprocity, solidarity and institutional trust. The results reveal an overall increased sense of solidarity among people, but lower levels of trust in government in countries hit hardest by the virus.

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