219

result(s)

Word(s)
Publication type
Author
Keyword
Date

Regular public hearing with Mario Draghi, Chair of the European Systemic Risk Board - ECON on 29 May 2017

23-05-2017

This briefing is provided in advance of a regular public hearing with the Chair of the European Systemic Risk Board (ESRB). It focuses on the ESRB most recent activity: ESRB latest assessment of the risks to financial stability, overview of national macro-prudential policies in 2016, the ESRB report on EMIR review, the report on the macro-prudential policy issues arising from low interest rates, and the on-going review of the macro-prudential policy framework.

This briefing is provided in advance of a regular public hearing with the Chair of the European Systemic Risk Board (ESRB). It focuses on the ESRB most recent activity: ESRB latest assessment of the risks to financial stability, overview of national macro-prudential policies in 2016, the ESRB report on EMIR review, the report on the macro-prudential policy issues arising from low interest rates, and the on-going review of the macro-prudential policy framework.

Country Specific Recommendations for 2016 and 2017 - A comparison and an overview of implementation

23-05-2017

This document presents: • The Country Specific Recommendations for 2016 generally endorsed by the European Council on 28/29 June 2016 and adopted by the Council on 12 July 2016; • The assessment of the implementation of 2016 Country Specific Recommendations based on the European Commission Country Reports as published on 22 February 2017; • The Draft Country Specific Recommendations for 2017 proposed by the European Commission (COM) on 22 May 2017 and to be adopted by the Council in July 2017; ...

This document presents: • The Country Specific Recommendations for 2016 generally endorsed by the European Council on 28/29 June 2016 and adopted by the Council on 12 July 2016; • The assessment of the implementation of 2016 Country Specific Recommendations based on the European Commission Country Reports as published on 22 February 2017; • The Draft Country Specific Recommendations for 2017 proposed by the European Commission (COM) on 22 May 2017 and to be adopted by the Council in July 2017; and • The Council Recommendation on the economic policy of the euro area approved by the Council on 21 March 2017.

The role of macro-prudential policies in prevention and correction of asset imbalances in the Euro Area

19-05-2017

In the aftermath of the financial crisis, there is consensus among academics and policy makers on the need for the so-called macroprudential policies. Additionally, the current low interest-rate environment creates further risks to financial stability. However, the implementation of such policies in a monetary union is a rather complex issue. Housing and credit markets heterogeneity across countries calls for action at national level. The role of the ECB in macroprudential policy is a matter of debate ...

In the aftermath of the financial crisis, there is consensus among academics and policy makers on the need for the so-called macroprudential policies. Additionally, the current low interest-rate environment creates further risks to financial stability. However, the implementation of such policies in a monetary union is a rather complex issue. Housing and credit markets heterogeneity across countries calls for action at national level. The role of the ECB in macroprudential policy is a matter of debate because monetary policy can conflict with the ultimate goal of macroprudential policy. This document reviews the key issues that are relevant for the implementation of macroprudential policies in the euro area and questions the current institutional framework. Finally, it gives some policy recommendations on how to improve the current situation.

External author

Margarita Rubio

The Fiscal Governance Frameworks of the United States and the European Union: Comparing ‘Apples and Pears’

19-05-2017

This paper lays out the different institutional frameworks that govern fiscal policy in the United States and the European Union. It details the resulting differences in fiscal activity through a comparison of the revenues, expenditures, and fiscal balances that we observe at the central and state level in both jurisdictions. The paper tries to provide a factual ‘snap shot’ of these fiscal frameworks in order to distinguish the characteristics of these two institutionally very different economic ...

This paper lays out the different institutional frameworks that govern fiscal policy in the United States and the European Union. It details the resulting differences in fiscal activity through a comparison of the revenues, expenditures, and fiscal balances that we observe at the central and state level in both jurisdictions. The paper tries to provide a factual ‘snap shot’ of these fiscal frameworks in order to distinguish the characteristics of these two institutionally very different economic governance systems.

The role of macro-prudential policy in the prevention and correction of imbalances in the euro area

19-05-2017

The euro area suffers from economic and financial imbalances between its members. Macro-prudential policy can help remedy this in as much as it can be deployed both at euro area level and Member State level. A macro-prudential policy framework to regulate financial cycles at Member State level and improve the resilience of systemic groups at euro area level would improve the economic and financial stability of the euro area and each of its members. Drawing on an inventory of the current practices ...

The euro area suffers from economic and financial imbalances between its members. Macro-prudential policy can help remedy this in as much as it can be deployed both at euro area level and Member State level. A macro-prudential policy framework to regulate financial cycles at Member State level and improve the resilience of systemic groups at euro area level would improve the economic and financial stability of the euro area and each of its members. Drawing on an inventory of the current practices and the teachings of recent academic work, we have formulated 15 proposals which aim to identify effective macro-prudential instruments to achieve this stability and, in a context of institutional transformation (Banking Union, Brexit, etc.) likely to facilitate changes, to streamline the institutional framework.

External author

Jézabel Couppey-Soubeyran, Salim Dehmej

Key Macroeconomic Indicators for Cyprus, Greece, Ireland and Portugal

16-05-2017

This document provides an overview of the progress made based on a selection of key indicators in Member States that are or have been subject to a Macroeconomic Adjustment Programme. Greece is still under a programme, while Ireland, Portugal and Cyprus have exited their programme and are now under so-called post-programme surveillance. For more detailed information please see separate table on Financial Assistance to EU Member States.

This document provides an overview of the progress made based on a selection of key indicators in Member States that are or have been subject to a Macroeconomic Adjustment Programme. Greece is still under a programme, while Ireland, Portugal and Cyprus have exited their programme and are now under so-called post-programme surveillance. For more detailed information please see separate table on Financial Assistance to EU Member States.

Structural Budget Balances in EU Member States

16-05-2017

Structural budget balances play an important role in the fiscal policy frameworks of the EU both as part of the application of the Stability and Growth Pact (SGP) and in the implementation of the balanced budget rule (“Fiscal Compact”) by the contracting parties of the intergovernmental Treaty on Stability, Coordination and Governance in the EMU. This document gives an overview of the concept and application of the structural balance rule(s) in the EU. It will be regularly updated, in particular, ...

Structural budget balances play an important role in the fiscal policy frameworks of the EU both as part of the application of the Stability and Growth Pact (SGP) and in the implementation of the balanced budget rule (“Fiscal Compact”) by the contracting parties of the intergovernmental Treaty on Stability, Coordination and Governance in the EMU. This document gives an overview of the concept and application of the structural balance rule(s) in the EU. It will be regularly updated, in particular, the annex that shows progress made (based on the latest Commission forecast) by Member States in reaching their structural budget commitments under the SGP.

Implementation of the Stability and Growth Pact (May 2017)

15-05-2017

This document gives an overview of key developments under the preventive and corrective arms of the Stability and Growth Pact (SGP) on the basis of (1) the latest Council decisions and recommendations in the framework of the SGP; (2) the latest European Commission (COM) economic forecast; and (3) the latest COM Opinions on compliance of the Draft Budgetary Plans (DBPs) of euro area Member States with the SGP. The document is regularly updated.

This document gives an overview of key developments under the preventive and corrective arms of the Stability and Growth Pact (SGP) on the basis of (1) the latest Council decisions and recommendations in the framework of the SGP; (2) the latest European Commission (COM) economic forecast; and (3) the latest COM Opinions on compliance of the Draft Budgetary Plans (DBPs) of euro area Member States with the SGP. The document is regularly updated.

An evolutionary path for a European Monetary Fund? A comparative perspective.

15-05-2017

Eurozone reformers are looking to the United States and other federations as they seek to craft a more sustainable architecture for the Euro. This paper first extracts lessons about mechanisms of inter-regional insurance and redistribution, and then turns attention to related debates about moral hazard and fiscal discipline. In the United States, inter-regional fiscal stabilization is achieved through a progressive income tax. Contrary to common wisdom, federal direct expenditures and grants are ...

Eurozone reformers are looking to the United States and other federations as they seek to craft a more sustainable architecture for the Euro. This paper first extracts lessons about mechanisms of inter-regional insurance and redistribution, and then turns attention to related debates about moral hazard and fiscal discipline. In the United States, inter-regional fiscal stabilization is achieved through a progressive income tax. Contrary to common wisdom, federal direct expenditures and grants are targeted neither to states suffering from short-term asymmetric negative shocks nor to relatively poor states in the long term. Fiscal policies of state and local governments are highly pro-cyclical, and partially undermine the stabilizing role of the system of federal taxes and transfers. Thus the U.S. experience suggests a number of design challenges facing any future Eurozone stabilization mechanism. The paper also places proposals for even stronger top-down surveillance and correction mechanisms of Eurozone member states’ fiscal policies in comparative perspective, arguing that such powers are not found in unions of sovereigns like the United States, Canada, and Switzerland. Moreover, there are reasons for concern about the credibility of such efforts in the Eurozone as currently structured. Unless political will can be found for extraordinary political and fiscal centralization, reformers should assume that member states will continue as sovereigns, and hence will be disciplined (or not) by voters and credit markets rather than European regulators. Thus it might be useful to consider policies that would make the “no-bail out clause” credible.

External author

Jonathan A. Rodden, Stanford University

Euro Area Key Indicators: Latest Forecasts by EC, IMF, ECB and OECD

12-05-2017

This table prepared by the Economic Governance Support Unit includes Euro Area key indicators and latest forecasts from the Commission, IMF, ECB and OECD.

This table prepared by the Economic Governance Support Unit includes Euro Area key indicators and latest forecasts from the Commission, IMF, ECB and OECD.

Upcoming events

29-05-2017
The future of OLAF
Workshop -
CONT
30-05-2017
The potential of electricity demand response
Workshop -
ITRE
30-05-2017
The current challenges of fighting terrorism and serious crime
Hearing -
LIBE

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