Challenges for the euro area [What Think Tanks are thinking]

09-11-2018

The discussion on how to deepen and improve the functioning of Economic and Monetary Union (EMU) continues on several fronts. Issues under discussion include euro-area governance, the role of the European Central Bank (ECB), the fiscal rules, debt-mutualisation, risk-sharing, and the nature of, and political compromises between, French and German perspectives within the system. The dispute between Italy and the European Commission over the former’s budget for 2019 is now a major topic for discussion at Eurogroup meetings, as are Banking Union and the sustainability of economic growth, notably in light of the expected tapering of the ECB’s bond-purchase programme. In a separate development, European Commission President Jean-Claude Juncker has proposed increasing the international role of the euro, which some analysts say could replace the US dollar in certain international transactions, given the volatility of US economic policies. This note brings together commentaries, analyses and studies by major international think tanks and research institutes on challenges facing the euro area and related issues. Earlier publications on the topic can be found in a previous edition of 'What Think Tanks are Thinking' published in June 2018.

The discussion on how to deepen and improve the functioning of Economic and Monetary Union (EMU) continues on several fronts. Issues under discussion include euro-area governance, the role of the European Central Bank (ECB), the fiscal rules, debt-mutualisation, risk-sharing, and the nature of, and political compromises between, French and German perspectives within the system. The dispute between Italy and the European Commission over the former’s budget for 2019 is now a major topic for discussion at Eurogroup meetings, as are Banking Union and the sustainability of economic growth, notably in light of the expected tapering of the ECB’s bond-purchase programme. In a separate development, European Commission President Jean-Claude Juncker has proposed increasing the international role of the euro, which some analysts say could replace the US dollar in certain international transactions, given the volatility of US economic policies. This note brings together commentaries, analyses and studies by major international think tanks and research institutes on challenges facing the euro area and related issues. Earlier publications on the topic can be found in a previous edition of 'What Think Tanks are Thinking' published in June 2018.