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EU economic developments and projections EN

02-12-2021 PE 645.716 ECON
Briefing
Sammanfattning : This briefing provides a summary of the recent economic developments in the EU Member States and gives an overview of relevant economic projections forecasted by major international and EU institutions
Författare : Javier María VEGA BORDELL, KRISTINA GRIGAITE

Single Resolution Board: Accountability arrangements (9th parliamentary term) EN

02-12-2021 PE 659.621 ECON
Briefing
Sammanfattning : This document provides an overview of public hearings and exchange of views with the Chair of the Single Resolution Board (SRB) in the ECON Committee since July 2019. It also provides an overview of all external papers requested by the ECON Committee by a standing panel of banking experts. Lastly, the annex contains an overview of the respective legal bases for these hearings as part of the accountability framework of the SRB. For an overview of public hearings during the 8th parliamentary term, please see here.
Författare : Marcel MAGNUS

Single Supervisory Mechanism: Accountability arrangements (9th parliamentary term) EN

02-12-2021 PE 659.623 ECON
Briefing
Sammanfattning : This document provides an overview of public hearings and exchange of views with the Chair of the European Central Bank (ECB) Supervisory Board in the ECON Committee since July 2019. It also provides an overview of all external papers requested by the ECON Committee by a standing panel of banking experts. Lastly, the annex contains an overview of the respective legal bases for these hearings as part of the accountability framework of the Single Supervisory Mechanism (SSM). For an overview of public hearings during the 8th parliamentary term, please see here.
Författare : Marcel MAGNUS

Public hearing with Elke König, Chair of the Single Resolution Board ECON on 1 December 2021 EN

29-11-2021 PE 689.434 ECON
Briefing
Sammanfattning : This note is prepared in view of an ordinary public hearing with the Chair of the Single Resolution Board (SRB), Elke König, which will take place on 1 December 2021. This briefing addresses the following topics: (i) cooperation with other authorities, (ii) home/host authorities and the issue of internal MREL, (iii) evolution of MREL stock and shortfalls, (iv) contributions to the Single Resolution Fund, and (v) summaries of external papers on the status quo of impediments to resolvability.
Författare : OLIVER SLOCOCK, Marcel MAGNUS, KRISTINA GRIGAITE, CATARINA DIAS BORGES FARRAJOTA, INES TEIXEIRA DA CUNHA

Impediments to resolvability – what is the status quo EN

29-11-2021 PE 689.447 ECON
Studie
Sammanfattning : This study develops on the status quo in relation to the assessment of resolvability of credit institutions and banking groups in the Banking Union and the removal of substantive impediments to their resolvability under the EU legal framework governing banking resolution, as in force, taking due account of the policies developed in that respect by the Single Resolution Board within the Single Resolution Mechanism.
Författare : Christos V. GORTSOS

Key figures of 2022 Draft Budgetary Plans EN

16-11-2021 PE 689.463 ECON
Briefing
Sammanfattning : This document compares key figures included in the 2022 Draft Budgetary Plans (DBPs), as submitted to the European Commission (EC) by the Euro Area Member States by mid of October 2021, with those of the autumn 2021 forecasts by the EC and the key figures included in the 2021 Stability Programmes (SPs), as submitted by the Euro Area Member States by end of April 2021, with the those of the 2021 spring forecasts by the EC. The EC is expected to adopt its opinions on the 2022 DBPs by end of November and the Eurogroup is expected to discuss these opinions on 6 December 2021.
Författare : Jost ANGERER, INES TEIXEIRA DA CUNHA

The ECB's New Definition of Price Stability: Better but Short of Specifics EN

03-11-2021 PE 695.473 ECON
Djupanalys
Sammanfattning : The new definition of price stability is a step in the right direction, even though the ECB could have gone further toward the Fed's average inflation targeting. This definition can become most helpful as the central bank navigates new uncertainties. Yet, the review does not deal with some daunting challenges that are already visible. It will need more than a few principles about price stability to deal with such issues as high and rising public debts, financial stability, or climate change. This paper was provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the committee on Economic and Monetary Affairs (ECON) ahead of the Monetary Dialogue with the ECB President on 15 November 2021.
Författare : Charles WYPLOSZ

The Implementation and Rationale of the ECB's New Inflation Target EN

03-11-2021 PE 695.474 ECON
Djupanalys
Sammanfattning : In July 2021, the ECB's target was revised, specifying that the 2 % inflation rate threshold should be applied symmetrically and with a medium-term orientation. We argue that a symmetric inflation target can significantly contribute to anchoring inflation expectations and to limiting the risks due to the zero- and/or effective-lower bound constraints. The monetary policy strategy revision will play a key role in the policy mix between fiscal and monetary policies for the post-pandemic recovery. This paper was provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the Committee on Economic and Monetary Affairs (ECON) ahead of the Monetary Dialogue with the ECB President on 15 November 2021.
Författare : Pierpaolo BENIGNO, Paolo CANOFARI, Giovanni DI BARTOLOMEO and Marcello MESSORI

A Welcome Revision Rather Than a Revolution EN

03-11-2021 PE 695.475 ECON
Djupanalys
Sammanfattning : This contribution is a preliminary analysis of the effect of the ECB's new strategy, notably the revised inflation target, on inflation expectations. We show that the announcement of the new strategy, although necessary for several reasons, had a minor effect on inflation expectations. This reveals that the reform was either already partially anticipated by the market or too timid. Therefore, we present alternative outcomes of the strategy review. This paper was provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the committee on Economic and Monetary Affairs (ECON) ahead of the Monetary Dialogue with the ECB President on 15 November 2021.
Författare : Christophe BLOT, Caroline BOZOU and Jérôme CREEL

The New Euro Area Inflation Indicator and Target: The Right Reset? EN

03-11-2021 PE 695.479 ECON
Djupanalys
Sammanfattning : This paper clarifies the main features of the European Central Bank's revised inflation target in light of international practices, discusses the role of financial stability in the medium-term orientation of monetary policy decisions, and quantifies the possible impacts of the inclusion of the costs related to owner-occupied housing on the inflation indicator which is subject to the inflation target. This paper was provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the committee on Economic and Monetary Affairs (ECON) ahead of the Monetary Dialogue with the ECB President on 15 November 2021.
Författare : Zsolt DARVAS and Catarina MARTINS

The ECB's Revised Inflation Target EN

03-11-2021 PE 695.478 ECON
Studie
Sammanfattning : In July 2021, the European Central Bank (ECB)’s Governing Council concluded the review of its monetary policy strategy. One of the main outcomes of the review was the revised price stability target. The ECB is now committed to “an inflation rate of 2% over the medium term”. The new target is symmetric, which means that negative and positive deviations from the target are considered as equally undesirable. Four papers were prepared by the ECON Committee’s Monetary Expert Panel, explaining the main features and implications of the ECB’s revised inflation target. This publication is provided by Policy Department A for the Committee on Economic and Monetary Affairs (ECON), ahead of the Monetary Dialogue with ECB President Lagarde on 15 November 2021.
Författare : Pierpaolo BENIGNO, Paolo CANOFARI, Giovanni DI BARTOLOMEO, Marcello MESSORI, Zsolt DARVAS, Catarina MARTINS, Charles WYPLOSZ, Christophe BLOT, Caroline BOZOU, Jérôme CREEL

European Banks’ Response to COVID-19 “Quick Fix” Regulation and Other Measures EN

31-10-2021 PE 695.461 ECON
Kort sammanfattning
Sammanfattning : The original full study presents data from 27 banking groups in 10 EU Member States, where it is found that banks have used COVID-19 relief measures extensively, with some cross-country differences as for the intensity of use. Flexibility in risk classification does not seem to have impaired banks’ ability to report and recognise risk properly, even for loans under moratoria. The findings suggest that the impact of the measures on banks’ credit supply has been overall positive and mainly driven by capital-enhancing measures such as the “Quick fix”.
Författare : CHRISTIAN SCHEINERT

Recovery and Resilience Plans: stakeholders’ involvement EN

29-10-2021 PE 689.453 ECON
Djupanalys
Sammanfattning : Based on the Commission assessments of national Recovery and Resilience Plans, this paper provides an overview of the overall involvement of stakeholders in the national recovery and resilience plans. In view of supporting the scrutiny of the implementation of the national plans, the paper also makes references to some positions and assessments by EU level stakeholders and other relevant institutions and bodies, including specific monitoring activities by think tanks and civil society organisations. The paper will be regularly updated.
Författare : WOLFGANG LEHOFER, CRISTINA SOFIA PACHECO DIAS, INES TEIXEIRA DA CUNHA

Housing and the Cost of Living EN

29-10-2021 PE 695.467 ECON
Djupanalys
Sammanfattning : The Harmonised Index of Consumer Prices (HICP), which constitutes the sole official measure of inflation in the euro area, leaves out an important part of household expenditure, namely the cost of owner-occupied housing (OOH). Most other developed economies include estimates of OOH in their consumer price index. The existing, even if imperfect, indicator available today from Eurostat should be included immediately in the HICP. It is unacceptable that Eurostat and the Commission have not been able to produce a better OOH indicator in the 18 years since the ECB first flagged the importance of housing costs in 2003. This paper was provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the committee on Economic and Monetary Affairs (ECON) ahead of the Monetary Dialogue with the ECB President on 15 November 2021.
Författare : Daniel GROS and Farzaneh SHAMSFAKHR

How should housing be treated in the HICP? EN

29-10-2021 PE 695.468 ECON
Djupanalys
Sammanfattning : The ECB has approved a plan to include a measure of the cost of owner-occupied housing in the HICP. This paper reviews the various methodologies that are used to incorporate this element into consumer price indices. It recommends the use of a rental equivalence approach rather than the net acquisitions approach currently used in Eurostat’s experimental price index of owner-occupied housing. This paper was provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the committee on Economic and Monetary Affairs (ECON) ahead of the Monetary Dialogue with the ECB President on 15 November 2021.
Författare : Karl WHELAN

Owner-Occupied Housing Costs and Monetary Policy: Goals and Challenges for the Euro Area EN

29-10-2021 PE 695.470 ECON
Djupanalys
Sammanfattning : Owner-occupied housing costs represent an important expenditure for households and should be included in the Harmonised Index of Consumer Prices. Conceptual and practical challenges must be resolved before this can be implemented. Estimates suggest that these costs would have a small impact on monetary policy. At the same time, different degrees of home ownership in the euro area mean that their inclusion may affect countries differently. Significant complementarity with other EU policies, like financial stability, are unlikely to materialise. This paper was provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the committee on Economic and Monetary Affairs (ECON) ahead of the Monetary Dialogue with the ECB President on 15 November 2021.
Författare : Geraldine DANY-KNEDLIK and Andrea PAPADIA

Including Owner-Occupied Housing Costs in the HICP: Some Technical and Policy Remarks EN

29-10-2021 PE 695.471 ECON
Djupanalys
Sammanfattning : We discuss the full inclusion of the owner-occupied housing costs (OOHCs) in the EU's harmonised index of consumer prices (HICP). We briefly review the main methods used for including these costs into consumer price indices, and in particular the reasons why the EU authorities prefer to adopt the net acquisitions approach rather than the rent equivalence approach, as other major countries did. We also argue that in the current scenario an acceleration of the EU's roadmap towards a full inclusion of OOHCs in the HICP would be desirable. This paper was provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the committee on Economic and Monetary Affairs (ECON) ahead of the Monetary Dialogue with the ECB President on 15 November 2021.
Författare : Luigi BONATTI and Andrea FRACASSO

Inflation Measurement: Role of Owner-Occupied Housing Costs EN

29-10-2021 PE 695.472 ECON
Studie
Sammanfattning : The harmonised index of consumer prices (HICP) is the measure used by the European Central Bank (ECB) to define its price stability target and guide policy. As such, it needs to relate closely to the actual inflation that households in the euro area are experiencing. Housing costs, an important part of household expenditures, are currently included in the HICP index through rental costs and only some minor elements of owner-occupied housing (OOH) costs. In July 2021, the ECB Governing Council recommended a multi-year roadmap to include OOH costs in the HICP. Four papers were prepared by the ECON Committee’s Monetary Expert Panel, discussing the conceptual, technical and policy aspects of integrating OOH costs into the HICP. This publication is provided by Policy Department A for the Committee on Economic and Monetary Affairs (ECON), ahead of the Monetary Dialogue with ECB President Lagarde on 15 November 2021.
Författare : Karl WHELAN, Daniel GROS, Farzaneh SHAMSFAKHR, Luigi BONATTI, Andrea FRACASSO, Geraldine DANY-KNEDLIK, Andrea PAPADIA

Recovery and Resilience Plans - state of play (October 2021) EN

26-10-2021 PE 689.459 ECON
Djupanalys
Sammanfattning : This document provides a state of play of the Recovery and Resilience Plans (RRPs) under the Recovery and Resilience Facility (RRF) covering, notably, Commission assessment and Council adoption procedures. It is based on an earlier EGOV paper, dated June 2021. The document will be regularly updated.
Författare : Alice ZOPPÉ, OVIDIU IONUT TURCU, CRISTINA SOFIA PACHECO DIAS, KRISTINA GRIGAITE

Country Specific Recommendations and Recovery and Resilience Plans - Thematic overview on gender-related issues EN

25-10-2021 PE 689.470 ECON
Djupanalys
Sammanfattning : Based on Commission’s assessments of national Recovery and Resilience Plans, this paper outlines how 2019 and 2020 Country Specific Recommendations covering gender related issues are being addressed in national plans. It also compiles the Member States’ explanations on how their plans contribute to gender equality, as required by the Recovery and resilience Facility Regulation. The paper will be updated once new relevant information is available.
Författare : CRISTINA SOFIA PACHECO DIAS, KRISTINA GRIGAITE

PRIIPs: Revised DA/RTS on improved disclosure rules for retail investment products EN

22-10-2021 PE 648.253 ECON
Briefing
Sammanfattning : This briefing has been prepared to support ECON’s work on scrutiny of the Delegated Regulation amending the RTS laid down in Commission Delegated Regulation (EU) 2017/653 on Key Information Documents (KIDs) as foreseen by Regulation (EU) No 1286/2014 on Packaged Retail and Insurance-based Investment Products (PRIIPs Regulation) . The Delegated Regulation was adopted by the Commission on 7 September 2021 together with two quick fix amendments of the PRIIPs Regulation and the Directive 2009/65/EC on Undertakings for Collective Investments in Transferable Securities (UCITS Directive).
Författare : Stephanie HONNEFELDER, OLIVER SLOCOCK, GAELLE CHARLOTTE CHAILLET

European green bond standard EN

21-10-2021 PE 694.239 ECON
Briefing
Sammanfattning : The IA assesses elements to be added to the 2019 TEG report on a European Green Bond Standard (EU-GBS). The range of options is therefore limited to these additional aspects and does not cover the entire set of rules for green bonds. The IA is based on reliable internal and external research, international data and several stakeholder consultations. While the definition of the objectives could have been more specific, the problem analysis and the assessment of options are overall logical and thorough, even if their structure could have been more straightforward. Some valuable information - and explanation - featured in the annexes could have made the main text of the IA more accessible, especially relating to the technical aspects and current market practices. Despite some weaknesses, the IA makes a convincing case for a voluntary EU-GBS, with some flexibility for sovereigns, taking into account their institutional specificities, but respecting the screening criteria of the EU-taxonomy.
Författare : Esther KRAMER

The SURE: Implementation EN

20-10-2021 PE 659.638 ECON
Briefing
Sammanfattning : Council Regulation 2020/672 established SURE, the European instrument for temporary support to mitigate unemployment risks in an emergency, which has been in force since 20 May 2020. This note provides an overview in tabular format of the SURE implementing decisions as adopted by Council, of Commission issuances under SURE and of disbursements. It will be regularly updated.
Författare : CRISTINA SOFIA PACHECO DIAS, INES TEIXEIRA DA CUNHA

The Recovery and Resilience Plans: governance at national level EN

19-10-2021 PE 689.444 ECON
Djupanalys
Sammanfattning : Based on the Commission assessments of national Recovery and Resilience Plans, this paper provides an overview of two specific dimensions of such analysis - the governance and control structures set up at national level for implementation of the national plans. The briefing summarises in an annex the relevant references in the Commission documents. It also presents, in the introduction, a high level analysis of some related elements of the national plans, as assessed by the Commission and related reports and initiatives. It also refers to the relevant legal framework in the Recovery and Resilience Facility Regulation. This paper will be updated once additional plans are assessed by the Commission.
Författare : CRISTINA SOFIA PACHECO DIAS

Don't let up - The EU needs to maintain high standards for its banking sector as the European economy emerges from the Covid-19 pandemic EN

18-10-2021 PE 689.461 ECON
Djupanalys
Sammanfattning : The European banking system has weathered the pandemic reasonably well with the help of government intervention and economic support. Going forward, the EU should ensure the financial sector remains resilient by implementing the Basel III capital requirements in full, monitoring effects of the digital transition, and continuing to hold banks to high standards.
Författare : Rebecca CHRISTIE, Monika GRZEGORCZYK

Impediments to resolvability – what is the status quo? EN

18-10-2021 PE 689.468 ECON
Djupanalys
Sammanfattning : To efficiently resolve a bank that is failing or likely to fail, and for which resolution is deemed in the public interest, it is important that impediments that hamper its resolvability are removed. Noting the limited public disclosure of banks and the Single Resolution Board (SRB), this paper assesses improvements in resolvability of a sample of 72 eurozone banks based on some key indicators. The main findings suggest that resolvability has marginally improved since the SRB resumed its full legal mandate in 2016, which is in line with earlier statements of the SRB characterising the process to make banks resolvable as a ‘marathon’.
Författare : M. Bodellini, W.P. De Groen

Country Specific Recommendations and Recovery and Resilience Plans - Thematic overview on tax avoidance, money laundering and corruption issues EN

18-10-2021 PE 689.469 ECON
Djupanalys
Sammanfattning : This paper outlines how 2019 and 2020 Country Specific Recommendations covering the fight against corruption, aggressive tax planning, tax evasion or tax avoidance or ineffective anti-money laundering measures are being addressed in national Recovery and Resilience Plans, based on Commission’s assessments. The paper will be updated once new relevant information is available.
Författare : CRISTINA SOFIA PACHECO DIAS, KRISTINA GRIGAITE

Tailoring prudential policy to bank size. The application of proportionality in the US and euro area EN

13-10-2021 PE 689.462 ECON
Djupanalys
Sammanfattning : All jurisdictions tailor their prudential policies to bank size, with generally more complex – though not necessarily more stringent – requirements for larger banks. This paper compares such policies in the euro area and United States, in the context of the differences in banking system structures and legal frameworks. There are vastly more stand-alone smaller banks and credit unions in the US than in the euro area. The US approach to prudential requirements is generally more differentiated by bank size than the euro area’s, but the US has a more uniform framework for bank crisis management and resolution. Given the permanence of cross-border fragmentation and overbanking in the euro area, further size-based policy differentiation would be ill-advised.
Författare : A. Lehmann, N. Véron- Bruegel

Review of the crisis management and deposit insurance framework -Summary of some related issues EN

11-10-2021 PE 659.632 ECON
Briefing
Sammanfattning : In February 2021, the Commission launched a consultation that sought to gather stakeholders’ experience with the current crisis management and deposit insurance framework as well as their views on the revision of the framework. The results of that consultation were published in a summary report. As the experience with the application of the current framework indicates that some adjustments may be warranted, this briefing summarises some of the underlying issues.
Författare : Marcel MAGNUS, KRISTINA GRIGAITE

Public hearing with A. Enria, Chair of the ECB Supervisory Board ECON on 14 October 2021 EN

11-10-2021 PE 689.432 ECON
Briefing
Sammanfattning : This note is prepared in view of a regular public hearing with the Chair of the Supervisory Board of the European Central Bank (ECB), Andrea Enria, which will take place on 14 October 2021. The briefing addresses: 1) Emerging risks in the banking group, as presented to the Eurogroup, 2) results of EBA’s and ECB’s 2021 stress test exercises, 3) the Basel Committee report on early lessons from the Covid-19 pandemic on the Basel reforms, 4) the ECB report on sanctioning activities, 5) the ECB Supervisory Banking Statistics for the first quarter 2021, and 6) summaries of external papers on long-term effects of the pandemic on the banking sector.
Författare : Marcel MAGNUS, KRISTINA GRIGAITE

Did the pandemic lead to structural changes in the banking sector? EN

11-10-2021 PE 689.460 ECON
Djupanalys
Sammanfattning : We discuss the main structural changes triggered by Covid19 in banking. Direct consequences include: the impact of the lockdown on remote shopping and telework, lower cash usage and a further shift towards innovative payment methods, the downturn suffered by the economy and bank borrowers. Indirect consequences (partly reinforcing pre-existing trends) include: the further development of payment services provided by non-bank competitors, an acceleration in bank digitalisation, a rise in cyber-attacks, a drop in the value of real estate collateral.
Författare : Andrea RESTI

Preventing money laundering in the banking sector - reinforcing the supervisory and regulatory framework EN

30-09-2021 PE 659.654 ECON
Djupanalys
Sammanfattning : This paper provides an overview of current initiatives and actions aiming at reinforcing the anti-money laundering (AML) supervisory and regulatory framework in the EU, in particular from a Banking Union perspective. This briefing first outlines the EU framework for fighting money laundering, which includes legislation (most notably the 5th AML Directive) and a number of Commission and Council Action Plans. Secondly, an overview of AML prevention relevant authorities, at both the EU and national level, is provided. This section also explains the 2019 review of the founding regulations of the European Supervisory Authorities, through which competences relating to preventing AML in the financial sector were consolidated within the European Banking Authority. Lastly, the paper highlights the latest proposed changes to the AML framework, as proposed by the Commission in their AML package published in July 2021. It is relevant to note that this briefing focuses on AML concerns in the banking sector. While financial and non-financial intermediaries have an important role to play, these are not the focus of this briefing. Nevertheless, reference is made to closely related areas (notably, to Financial Intelligence Units, the work of markets and insurance supervisors on preventing AML and related matters) when relevant to a better understanding of its impacts on the banking sector. This paper builds on and updates a previous EGOV briefing on the same topic.
Författare : Marcel MAGNUS, CRISTINA SOFIA PACHECO DIAS, KRISTINA GRIGAITE

Taxing professional football in the EU |A Comparative and EU analysis of a sector with tax gaps EN

30-09-2021 PE 695.451 FISC ECON
Studie
Sammanfattning : This study scrutinises the tax treatment of professional football players' remuneration throughout the European Union. It does so on the basis of a comparative analysis of selected country schemes. It draws conclusions and formulates suggestions for a future European Union approach.
Författare : Prof.dr. Robby Houben, Prof.dr. Anne Van de Vijver, Prof.dr. Niels Appermont and Gertjan Verachtert

European Banks’ Response to COVID-19 “Quick Fix” Regulation and Other Measures EN

30-09-2021 PE 695.460 ECON
Studie
Sammanfattning : The original full study presents data from 27 banking groups in 10 EU Member States, where it is found that banks have used COVID-19 relief measures extensively, with some cross-country differences as for the intensity of use. Flexibility in risk classification does not seem to have impaired banks’ ability to report and recognise risk properly, even for loans under moratoria. The findings suggest that the impact of the measures on banks’ credit supply has been overall positive and mainly driven by capital-enhancing measures such as the “Quick fix”.
Författare : CHRISTIAN SCHEINERT

Country-Specific Recommendations for 2019, 2020 and 2021 EN

29-09-2021 PE 651.391 ECON
Studie
Sammanfattning : This document presents: • The 2019 Country-Specific Recommendations (CSRs) adopted by the Council, in the framework of the European Semester, on 9 July 2019 (on the basis of European Commission proposals of 5 June 2019). • The European Commission’s assessments of the implementation of the 2019 CSRs based on its Country Reports published on 26 February 2020. • The 2020 CSRs adopted by the Council, in the framework of the European Semester, on 20 July 2020 (on the basis of European Commission proposals of 20 May 2020). • The 2021 fiscal recommendations (recommendations for Council opinions on the 2021 Stability and Convergence Programmes) adopted by the Council on 18 June 2021. • During the 2021 Semester Cycle, exceptionally, due to the preparations and adoptions of the Recovery and Resilience Plans under the Recovery and Resilience Facility, no further Country Specific Recommendations (CSRs) have been issued under the European Semester.
Författare : Jost ANGERER, KRISTINA GRIGAITE

Scrutiny dialogues and hearings in the European Parliament in the area of monetary, economic and financial affairs EN

28-09-2021 PE 659.609 ECON
Kort sammanfattning
Sammanfattning : This document presents the organisation and legal bases of the scrutiny dialogues and hearings in the European Parliament in the area of monetary, economic and financial affairs.
Författare : Kajus HAGELSTAM

The role of non-financial performance indicators and integrated reporting in achieving sustainable value creation EN

24-09-2021 PE 662.943 ECON
Kort sammanfattning
Sammanfattning : The original full study is a structured analysis of the current scientific evidence on the effects of sustainability reporting including non-financial performance indicators, stand-alone sustainability reporting as well as integrated reporting. It discusses the benefits and challenges particularly related to internal decision-making, external transparency as well as financial and non-financial/environmental, social and governance effects. Further, it offers policy recommendations in view of the European Commission’s proposal on the Corporate Sustainability Reporting Directive.
Författare : Udo BUX, RADOSTINA PARENTI

Update on recent banking developments EN

23-09-2021 PE 689.431 ECON
Briefing
Sammanfattning : This briefing summarises recent publications that are particularly relevant in the context of bank supervision, namely: 1) the Basel Committee Interim report on early lessons from the Covid-19 pandemic on the Basel reforms, 2) the EBA peer review report on the prudential assessment of the acquisition of qualifying holdings, 3) the ECB Supervisory Banking Statistics for the first quarter 2021, and 4) the EBA report on High Earners.
Författare : Marcel MAGNUS, CRISTINA SOFIA PACHECO DIAS, KRISTINA GRIGAITE

Background reader on the European Semester and monitoring of the RRF from a parliamentary perspective EN

23-09-2021 PE 689.446 ECON
Studie
Sammanfattning : This sixth edition of the background reader on the European Semester, prepared by the Economic Governance Support Unit (EGOV) in the Directorate for Economic and Scientific Policies of the European Parliament, provides an overview of publications related to the European Semester and the monitoring of the RRF from a parliamentary perspective. It aims at further increasing the links between Members of the European Parliament and national Parliaments, notably during inter-parliamentary meetings.
Författare : Kajus HAGELSTAM, WOLFGANG LEHOFER

European Parliament involvement in scrutinising the Recovery and Resilience Facility EN

22-09-2021 PE 659.627 ECON
Briefing
Sammanfattning : This note provides a brief overview of Parliament involvement in scrutinising the Recovery and Resilience Facility (and the European Union Recovery Instrument). It is based on Regulation 2021/241 of 21 February, setting out the Recovery and Resilience Facility, and the relevant parts of the new Interinstitutional Agreement on budgetary matters established between the Parliament, the Council and the Commission. It does not cover nor discusses in detail other instruments or frameworks for scrutiny, namely those relating to the European Semester, EU budgetary procedures, written or oral questions or any discharge procedures. This paper updates an earlier one initially published on January 2021.
Författare : CRISTINA SOFIA PACHECO DIAS

Rise in Inflation: Temporary or Sign of a More Permanent Trend? EN

14-09-2021 PE 695.447 ECON
Studie
Sammanfattning : Inflation in the euro area, as measured by the harmonised index of consumer prices (HICP), has risen to 3% in August 2021. According to the latest projections, the European Central Bank (ECB) expects inflation to increase further in the fourth quarter, and then decline to 1.7% (2022) and 1.5% (2023), well below its medium-term target of 2%. Will the current increase of inflation truly be short-lived because it is driven by temporary factors? Or has, after years of persistently low inflation, the disruption caused by COVID-19 ushered in a period of more sustained inflationary pressure? Five papers were prepared by the ECON Committee’s Monetary Expert Panel, looking into the drivers of the current rise in inflation, factors likely to influence the medium-term path of inflation, and implications for monetary policy. This publication is provided by Policy Department A for the Committee on Economic and Monetary Affairs (ECON), ahead of the Monetary Dialogue with ECB President Lagarde on 27 September 2021.
Författare : Christophe BLOT, Caroline BOZOU, Jérôme CREEL, Kerstin BERNOTH, Gökhan IDER, Karl WHELAN, Joscha BECKMANN, Klaus-Jürgen GERN, Philipp HAUBER, Nils JANNSEN, Ulrich STOLZENBURG, Luigi BONATTI, Roberto TAMBORINI

The Tail Wagging the Dog? Overcoming Financial Dominance EN

13-09-2021 PE 662.945 ECON
Djupanalys
Sammanfattning : The idea of financial dominance has gained some notoriety in recent years as a further constraint on central bank policymaking. This paper examines the reality of financial dominance and how the financial sector may be an impediment to the necessary unwinding of all unconventional monetary policies in Europe. In line with the existing literature, I conclude that the financial sector has been made more vulnerable as a result of quantitative easing – and allowing the financial tail to wag the monetary dog will lead to only more vulnerability. This paper was provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the committee on Economic and Monetary Affairs (ECON) ahead of the Monetary Dialogue with the ECB President on 27 September 2021.
Författare : Christopher A. HARTWELL

What About Policy Normalisation? EN

13-09-2021 PE 662.946 ECON
Djupanalys
Sammanfattning : As the ECB follows the time-honoured inflation targeting strategy, it runs the risk of, once more, failing to normalise its policy in time for the next unexpected shock. With interest rates at their lower bounds and facing historic uncertainty that undermines its policy effectiveness, a strong case can be made for developing a Plan B. This paper was provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the committee on Economic and Monetary Affairs (ECON) ahead of the Monetary Dialogue with the ECB President on 27 September 2021.
Författare : Charles WYPLOSZ

Financial Dominance in the Pandemic and Post Pandemic European Economy EN

13-09-2021 PE 695.448 ECON
Djupanalys
Sammanfattning : Differently from past episodes, the European institutions responded to the pandemic shock with an appropriate policy mix.However, the expansionary convergence betweenmonetary and fiscal policies is strengthening the role and thepossible distortionary effects of financial dominance. Due to the consequent growing imbalances in financial markets, Europeaninstitutions could deem it necessary to abandon the currentpolicy approach and to re-attribute the function of the "onlygame in town" to monetary policy. However, in the post-pandemic context, the ECB could hardly act again as a last-resort player. Hence, it is convenient to pursue the policies that arecompatible with sustainable post-pandemic development. This paper was provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the committee on Economic and Monetary Affairs (ECON) ahead of the Monetary Dialogue with the ECB President on 27 September 2021.
Författare : Pierpaolo BENIGNO, Paolo CANOFARI, Giovanni DI BARTOLOMEO, Marcello MESSORI

Financial Dominance: Not an Immediate Danger EN

13-09-2021 PE 695.449 ECON
Djupanalys
Sammanfattning : Financial dominance describes a situation in which a central bank does not dare to tighten its policy stance as this would threaten the stability of the financial system. The danger of this happening is limited at present. The banking system is well capitalised. Private credit has not expanded much, not even during the COVID-19 recession in most euro area countries – except in France. However, in some countries, the financial sector remains highly exposed to sovereign debt. "Indirect financial dominance" could thus easily arise if sovereign risk premia return. Continuing asset purchases under the PEPP increases the danger of fiscal dominance. This paper was provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the committee on Economic and Monetary Affairs (ECON) ahead of the Monetary Dialogue with the ECB President on 27 September 2021.
Författare : Daniel GROS, Farzaneh SHAMSFAKHR

Inflation on the Upswing - Just a Hiccup or a Trend Reversal After All? EN

13-09-2021 PE 695.450 ECON
Djupanalys
Sammanfattning : Although energy price volatility has recently been the largest contributor to movements in the headline inflation rate, there are other factors indicating that inflation in the euro area will remain elevated in the months ahead. However, most of them have only a temporary effect. A major risk to the further development of inflation is a rise in inflation expectations, which should be monitored critically. This paper was provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the committee on Economic and Monetary Affairs (ECON) ahead of the Monetary Dialogue with the ECB President on 27 September 2021.
Författare : Kerstin BERNOTH, Gökhan IDER

Rise in Inflation: Much Ado About Nothing? EN

13-09-2021 PE 695.452 ECON
Djupanalys
Sammanfattning : Euro area inflation reached 3% in August, a rapid increase from August 2020 when it was -0.3%. As the inflation rate now outpaces the ECB's medium-term target of 2%, could it become a concern for the central bank? After showing that the health crisis was unprecedented in its nature and sectoral characteristics, we study the determinants of inflation in the short term and then discuss various elements that could influence the trajectory of future inflation and mitigate inflation fears. This paper was provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the committee on Economic and Monetary Affairs (ECON) ahead of the Monetary Dialogue with the ECB President on 27 September 2021.
Författare : Christophe BLOT, Caroline BOZOU and Jérôme CREEL

Should ECB Be Worried About Inflation? EN

13-09-2021 PE 695.454 ECON
Djupanalys
Sammanfattning : Inflation jumped to 3% in August raising questions about whether the ECB needs to alter its monetary policy. This paper reviews the recent evidence on euro area inflation and concludes the current increase is likely to be temporary, being driven by a rise in energy prices that is likely to end soon and a range of temporary factors relating to the pandemic. This paper was provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the committee on Economic and Monetary Affairs (ECON) ahead of the Monetary Dialogue with the ECB President on 27 September 2021.
Författare : Karl WHELAN

Is High Inflation the New Challenge for Central Banks? EN

13-09-2021 PE 695.455 ECON
Djupanalys
Sammanfattning : In this paper we briefly review the macroeconomic theory of inflation, relating it to the recent developments in the advanced economies. Then, we analyse the drivers of the rise in inflation observed in 2021 in the United States and in Europe, and we illustrate the factors that may affect the inflationary scenario of the advanced economies in the longer term. Finally, we discuss what challenges the Federal Reserve and the European Central Bank have to meet in the face of current inflationary pressures. This paper was provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the committee on Economic and Monetary Affairs (ECON) ahead of the Monetary Dialogue with the ECB President on 27 September 2021.
Författare : Luigi BONATTI, Roberto TAMBORINI

Beyond the Pandemic: Avoiding the Risk of Financial Dominance and Disorderly Market Reactions EN

13-09-2021 PE 695.446 ECON
Studie
Sammanfattning : The concept of financial dominance may be simplified as a situation where monetary policy becomes dominated by short-term concerns about the financial sector. As such, it may distract the central bank from its primary objective of maintaining price stability. While other policies, e.g. macroprudential, are considered the first line of defence against financial instability, following the 2007-2008 global financial crisis, financial stability considerations became an integral part of monetary policy decision-making in advanced economies. The interplay between these considerations and the central bank’s primary objective could become relevant in the post-pandemic environment. Four papers were prepared by the ECON Committee’s Monetary Expert Panel, assessing the risk of financial dominance and disorderly market reactions to monetary policy decisions in the euro area. This publication is provided by Policy Department A for the Committee on Economic and Monetary Affairs (ECON), ahead of the Monetary Dialogue with ECB President Lagarde on 27 September 2021.
Författare : Pierpaolo BENIGNO, Paolo CANOFARI, Giovanni DI BARTOLOMEO, Marcello MESSORI, Charles WYPLOSZ, Daniel GROS, Farzaneh SHAMSFAKHR, Christopher A. HARTWELL

Rising Inflation: Transitory or Cause for Concern? EN

13-09-2021 PE 695.453 ECON
Studie
Sammanfattning : Consumer price inflation in the euro area has sharply risen to 3% in the course of 2021. This increase was mainly due to higher energy prices and other transitory factors. Recent macroeconomic forecasts generally expect inflation to return to below target values next year. However, there are several factors in place that could lead to more sustained upward pressure on prices, and materialisation of these upward risks could force the ECB to take difficult choices. This paper was provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the committee on Economic and Monetary Affairs (ECON) ahead of the Monetary Dialogue with the ECB President on 27 September 2021.
Författare : Joscha BECKMANN, Klaus-Jürgen GERN, Philipp HAUBER, Nils JANNSEN, Ulrich STOLZENBURG

The role of non-financial performance indicators and integrated reporting in achieving sustainable value creation EN

10-09-2021 PE 662.944 ECON
Studie
Sammanfattning : Structured analysis of the current scientific evidence on the effects of sustainability reporting including non-financial performance indicators, stand-alone sustainability reporting as well as integrated reporting. It discusses the benefits and challenges particularly related to internal decision-making, external transparency as well as financial and non-financial/environmental, social and governance effects. Further, it offers policy recommendations in view of the European Commission’s proposal on the Corporate Sustainability Reporting Directive.
Författare : Udo BUX, RADOSTINA PARENTI

Policy Departments’ Monthly Highlights - September 2021 EN

Kort sammanfattning
Sammanfattning : The Monthly Highlights publication provides an overview, at a glance, of the on-going work of the policy departments, including a selection of the latest and forthcoming publications, and a list of future events.

Economic Dialogue with the other EU Institutions under the European Semester Cycles during the 9th legislative term - State of play September 2021 EN

09-09-2021 PE 624.436 ECON
Briefing
Sammanfattning : This document provides an overview of Economic Dialogues with the other institutions of the European Union that has taken place in the competent committee(s) of the European Parliament since September 2019 under the European Semester for economic policy coordination. It also lists the Recovery and Resilience Dialogues with the European Commission as undertaken by the competent committee(s) since the entry of force of the Recovery and Resilience Facility in 2021. It also includes an overview of the respective legal bases for these dialogues.
Författare : Kajus HAGELSTAM

Economic Dialogues and Exchanges of Views with the Member States under the European Semester Cycles - State-of-Play EN

08-09-2021 PE 497.736 ECON
Briefing
Sammanfattning : This table provides a regular update on Member States invited for an Economic Dialogue in the competent Committee of the European Parliament and an overview of the respective legal base.
Författare : Kajus HAGELSTAM

Economic Dialogue with Greece 1 September 2021 EN

30-08-2021 PE 689.457 ECON
Djupanalys
Sammanfattning : This note presents selected information on the current status of the EU economic governance procedures and related relevant information in view of an economic dialogue and exchange of views with Christos Staikouras, Minister of Finance of Greece, in the ECON committee of the European Parliament. The invitation for an exchange of views is in accordance with the EU economic governance framework. The last exchange of views with the Greek authorities took place in March 2016.
Författare : Alice ZOPPÉ, Jost ANGERER, Marcel MAGNUS, CRISTINA SOFIA PACHECO DIAS, KRISTINA GRIGAITE

Recovery and Resilience Dialogue with the European Commission 1 September 2021 EN

30-08-2021 PE 689.458 ECON
Djupanalys
Sammanfattning : Executive Vice-President Dombrovskis and Commissioner Gentiloni have been invited to the third Recovery and Resilience Dialogue under the Recovery and Resilience Facility Regulation. This briefing addresses the following subjects: the state of play of the Recovery and Resilience plans and of the Recovery and Resilience Facility; the statistical recording of the Recovery and Resilience Facility and some data on the current economic situation and estimates on the impact of the Facility.
Författare : Alice ZOPPÉ, Jost ANGERER, WOLFGANG LEHOFER, CRISTINA SOFIA PACHECO DIAS, KRISTINA GRIGAITE

Macro-Financial Assistance to EU Member States – State of Play – August 2021 EN

26-08-2021 PE 651.367 ECON
Djupanalys
Sammanfattning : This document provides regularly updated information on EU Member States which receive or received financial assistance from the ESM, the EFSF, the EFSM, the EU balance of payments assistance facility, other Member States and/or the IMF. Since August 2018 all financial assistance programmes to EU Member States have been concluded; therefore, the document focuses on the implementation of the enhanced surveillance framework for Greece and post-programme reviews for Ireland, Portugal, Romania, Cyprus and Spain undertaken by the European Commission (EC) in liaison with the ECB (Post-Programme Surveillance, PPS), the IMF (Post-Programme Monitoring, PPM, and Article IV assessments) and the ESM (Early Warning System, EWS).
Författare : Jost ANGERER, CRISTINA SOFIA PACHECO DIAS

Implementation of the Macroeconomic Imbalance Procedure: State of play August 2021 EN

25-08-2021 PE 497.739 ECON
Djupanalys
Sammanfattning : This note presents the EU Member States' situation with respect to the Macroeconomic Imbalance Procedure, taking into account recent assessments and decisions by the European Commission and the Council. It also gives an overview of relevant comments on the MIP published by EU institutions. A separate EGOV note describes the MIP procedure. This document is regularly updated.
Författare : Alice ZOPPÉ

Improving corporate sustainability reporting EN

27-07-2021 PE 694.219 JURI ECON
Briefing
Sammanfattning : The European Commission proposed to improve sustainability reporting by revising the non-financial reporting directive 2014/95/EU. The accompanying impact assessment (IA) provides a well-defined problem that is substantiated with evidence, a clear set of objectives that correspond to the problems identified and makes effort to cover SMEs in the consultation strategy. Overall, the evidence used in the IA seems recent and reliable. However, the IA has not set any concrete targets, indicators or timelines for achieving its objectives. The range of options in the IA appears rather imbalanced, the analysis has been predominantly economic and has focused on the effectiveness of meeting the specific objectives and their costs, while the discussion of benefits has remained rather descriptive. Environmental impacts seem to have been completely excluded, the costs of indirect effects on SMEs in the supply chains of large companies have not been quantified and the benefits for listed SMEs have not been elaborated on.
Författare : Vera VIKOLAINEN

Euro Area fiscal policies and capacity in post-pandemic times EN

23-07-2021 PE 651.393 ECON
Djupanalys
Sammanfattning : The Covid-19 pandemic has created huge challenges for policymakers in the whole world. These challenges have to do with both the short run and the long run. In addition, in the euro area, these challenges have dimensions that are peculiar to the fact that the euro area is a monetary union with one monetary authority and nineteen separate budgetary authorities. In this policy brief, the author provides some answer to two questions: • Which policy mix (national/supranational) supports smooth recovery, sustainability of public finances and resilience of the euro area? • Which EMU governance reforms should be prioritised so as to improve the functioning of the euro area?
Författare : Paul De Grauwe

Study in focus: Shadow Banking: what kind of Macroprudential Regulation Framework? EN

16-07-2021 PE 662.938 ECON
Kort sammanfattning
Sammanfattning : This publication summarises the key findings of the original study on Shadow banking. Shadow banking is a form of bank-like intermediation where regulatory standards are looser than for regular banks. It includes money market funds and other funds using leverage, securities and derivatives dealers, securitisations, securities financing transactions and derivatives, as well as new players like digital lenders and stablecoins. This document was provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the committee on Economic and Monetary Affairs (ECON).
Författare : Andrea RESTI, Marco ONADO, Mario QUAGLIARIELLO and Phil MOLYNEUX

Recovery and Resilience Dialogue with the European Commission 14 July 2021 EN

13-07-2021 PE 689.456 ECON
Djupanalys
Sammanfattning : Executive Vice-President Dombrovskis and Commissioner Gentiloni have been invited to the second Recovery and Resilience Dialogue under the Recovery and Resilience Facility Regulation. This briefing addresses the following subjects: the Recovery and Resilience Facility and its scrutiny; the state of play of adoption and assessment of the Recovery and Resilience plans; the European Parliament resolutions on the Recovery and Resilience Facility; the financing of national Recovery and Resilience plans and some data on the current economic situation and estimates on the impact of Facility.
Författare : CRISTINA SOFIA PACHECO DIAS, REBECCA SARAH FANNY SEGALL, KRISTINA GRIGAITE

Study in focus: Robo-advisors EN

12-07-2021 PE 662.935 ECON
Kort sammanfattning
Sammanfattning : This document summarises the key findings of the orginal study which analyses if and to what extent the current EU legal framework provides effective investor protection for customers of robo-advisors. It puts emphasis on structural conflicts of interests, the difficulties presented by the supervision of algorithms, and potential threats to the stability of the financial system. This document was provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the committee on Economic and Monetary Affairs (ECON).
Författare : Philipp MAUME

Economic Dialogue and Exchange of Views with the President of the Council (ECOFIN) EN

09-07-2021 PE 689.454 ECON
Djupanalys
Sammanfattning : Minister Andrej Šircelj, Minister of Finance of Slovenia, is participating in the ECON Committee in his capacity of President of the ECOFIN Council during the Slovenian Presidency (July-December 2021). In accordance with the Treaty of the Union, “Member States shall regard their economic policies as a matter of common concern and shall coordinate them within the Council”. This briefing provides an overview of the Slovenian Presidency priorities in ECON matters, including the Council’s work relating to the implementation of the European Semester for economic coordination, notably the application of the Recovery and Resilience Facility and deepening of the Economic and Monetary Union (EMU).
Författare : Jost ANGERER, Marcel MAGNUS, WOLFGANG LEHOFER, CRISTINA SOFIA PACHECO DIAS, REBECCA SARAH FANNY SEGALL, KRISTINA GRIGAITE, KATJA KOMAZEC

Economic Dialogue with Spain EN

09-07-2021 PE 689.455 ECON
Djupanalys
Sammanfattning : This note presents selected information on the current status of the EU economic governance procedures and related relevant information in view of an Economic Dialogue with Nadia Calviño, Minister of Economic Affairs and Digital Transformation in Spain, in the ECON committee of the European Parliament. The invitation for a dialogue is in accordance with the EU economic governance framework. The last exchange of views with the Spanish authorities took place in November 2012, January 2014, November 2016 and 22 January 2019.
Författare : Alice ZOPPÉ, Jost ANGERER, Marcel MAGNUS, CRISTINA SOFIA PACHECO DIAS, KRISTINA GRIGAITE, KATJA KOMAZEC

What are the main differences between the practice of supervising large banks in the UK and in the euro area, and what are the main risks of regulatory divergence? EN

05-07-2021 PE 689.443 ECON
Djupanalys
Sammanfattning : This in-depth analysis provides evidence on differences in the practice of supervising large banks in the UK and in the euro area. It identifies the diverging institutional architecture (partially supranationalised vs. national oversight) as a pivotal determinant for a higher effectiveness of supervisory decision making in the UK. The ECB is likely to take a more stringent stance in prudential supervision than UK authorities. The setting of risk weights and the design of macroprudential stress test scenarios document this hypothesis.
Författare : R. Haselmann, T. Tröger

What Are the Effects of the ECB’s Negative Interest Rate Policy? EN

02-07-2021 PE 662.922 ECON
Djupanalys
Sammanfattning : Several central banks, including the European Central Bank since 2014, have added negative policy rates to their toolboxes after exhausting conventional easing measures. It is essential to understand the effects on the economy of prolonged negative rates. This paper explores the potential effects (and side effects) of negative rates in theory and examines the evidence to determine what these effects have been in practice in the euro area. This paper was provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the committee on Economic and Monetary Affairs (ECON) ahead of the Monetary Dialogue with the ECB President on 21 June 2021.
Författare : Grégory CLAEYS

Euro Area fiscal policies and capacity in post-pandemic times EN

02-07-2021 PE 689.445 ECON
Studie
Sammanfattning : This paper situates the EU’s fiscal response to the pandemic (suspending the Stability and Growth Pact, creating the SURE and Recovery and Resilience Facility) within longstanding debates on reforming EU fiscal governance and offers recommendations on the way forward, specifically the SGP reforms needed prior to returning to its rules and creating a budget with a stabilisation capacity.
Författare : M. CHANG

Should They Stay or Should They Go? Negative Interest Rate Policies Under Review EN

30-06-2021 PE 662.918 ECON
Djupanalys
Sammanfattning : Negative interest rate policies (NIRP) have become an established monetary policy instrument in the toolkit of the ECB. We discuss NIRP in the euro area based on theoretical considerations and available empirical evidence. We find that NIRP had some positive impact on loan growth and investment in the euro area, but that the room to further loosen monetary policy via NIRP may be small. NIRP is discussed also in the context of the general monetary policy environment. This paper was provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the committee on Economic and Monetary Affairs (ECON) ahead of the Monetary Dialogue with the ECB President on 21 June 2021.
Författare : Joscha BECKMANN, Klaus-Jürgen GERN, Nils JANNSEN

Low for Long: Side Effects of Negative Interest Rates EN

30-06-2021 PE 662.920 ECON
Studie
Sammanfattning : Policy rate cuts in negative territory have increased credit supply and improved the macroeconomic environment similar to cuts in positive territory. Dreaded disruptions to the monetary policy transmission channels as well as adverse side effects on bank profitability have so far largely failed to materialise. Thus, the evidence available today shows that the negative interest rate policy is an effective policy tool. However, systemic risks, including in the non-bank sector, should be closely monitored as negative rates are expected to remain low for longer. This paper was provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the committee on Economic and Monetary Affairs (ECON) ahead of the Monetary Dialogue with the ECB President on 21 June 2021.
Författare : Justus INHOFFEN, Atanas PEKANOV, Thomas URL

Shadow Banking: what kind of Macroprudential Regulation Framework? EN

30-06-2021 PE 662.925 ECON
Studie
Sammanfattning : Shadow banking is a form of bank-like intermediation where regulatory standards are looser than for regular banks. It includes money market funds and other funds using leverage, securities and derivatives dealers, securitisations, securities financing transactions and derivatives, as well as new players like digital lenders and stablecoins. We look at theoretical contributions and empirical data and suggest possible policy options. We recommend that rules be unambiguous and apply to all institutions performing similar functions. This document was provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the committee on Economic and Monetary Affairs (ECON).
Författare : Andrea RESTI, Marco ONADO, Mario QUAGLIARIELLO and Phil MOLYNEUX

Robo-advisors EN

30-06-2021 PE 662.928 ECON
Studie
Sammanfattning : This study analyses if and to what extent the current EU legal framework provides effective investor protection for customers of robo-advisors. It puts emphasis on structural conflicts of interests, the difficulties presented by the supervision of algorithms, and potential threats to the stability of the financial system. This document was provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the committee on Economic and Monetary Affairs (ECON).
Författare : Philipp MAUME

Once More, the US Leads Europe EN

29-06-2021 PE 662.914 ECON
Djupanalys
Sammanfattning : The US and European economic approaches to the COVID-19 pandemic have differed in many ways. It is most likely that the US recovery will come sooner and will be stronger than in Europe, pretty much as has been the case with the global financial crisis a decade ago. In order to achieve a solid and lasting recovery, Europe needs to learn from the previous crisis and to prepare for the effects of the coming rapid US expansion. This paper was provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the committee on Economic and Monetary Affairs (ECON) ahead of the Monetary Dialogue with the ECB President on 21 June 2021.
Författare : Charles WYPLOSZ

Public hearing with Elke König, Chair of the Single Resolution Board 1 July 2021 EN

28-06-2021 PE 689.429 ECON
Briefing
Sammanfattning : This note is prepared in view of an ordinary public hearing with the Chair of the Single Resolution Board (SRB), Elke König, which will take place on 1 July 2021. The Chair will present the SRB’s annual report for 2020. This briefing addresses (i) the review of the crisis management framework, and in particular the SRB’s input to the Commission’s public consultation; (ii) MREL policy and statistics; (iii) liquidity in resolution; (iv) the relationship with the United Kingdom: contractual recognition of bailinable liabilities issued under third country laws; (v) developments in respect of particular resolution cases; (vi) contributions to the Single Resolution Fund; and (vii) SRB and some other publications.
Författare : OLIVER SLOCOCK, Marcel MAGNUS, CRISTINA SOFIA PACHECO DIAS, REBECCA SARAH FANNY SEGALL, KRISTINA GRIGAITE

Public hearing with Christine Lagarde, Chair of the European Systemic Risk Board EN

28-06-2021 PE 689.430 ECON
Briefing
Sammanfattning : This note is prepared in view of a regular public hearing with the Chair of the European Systemic Risk Board (ESRB), Christine Lagarde, which will take place on 1 July 2021. The aim of the meeting is to present the ESRB Annual Report and to discuss recent developments in macroprudential policy field, potential systemic risks looming ahead, notably the impact of the pandemic. The briefing takes stock of (i) the ESRB and national macroprudential authorities’ response to the pandemic outbreak; (ii) summarises recent risk assessments; and takes a closer look at the following topics as potential sources of increasing systemic risk: (iii) corporate insolvency risks, (iv) macroprudential policy implications from low interest rates and (v) macroprudential concerns beyond banking.
Författare : Marcel MAGNUS, CRISTINA SOFIA PACHECO DIAS, REBECCA SARAH FANNY SEGALL, KRISTINA GRIGAITE, GIULIA GOTTI, KATJA KOMAZEC

Public hearing with Andrea Enria, Chair of the ECB Supervisory Board 1 July 2021 EN

28-06-2021 PE 689.442 ECON
Djupanalys
Sammanfattning : This note is prepared in view of a regular public hearing with the Chair of the Supervisory Board of the European Central Bank (ECB), Andrea Enria, which will take place on 1 July 2021. The briefing addresses (i) the ECB’s TRIM Project Report, (ii) data on significant banks’ holdings of sovereign debt, (iii) the ECB’s publication on banks’ recovery plans, (iv) the ECB’s Supervisory banking statistics for the fourth quarter of 2020, (v) the ECB consultation on revised “fit & proper” guidance, (vi) the EBA 2020 Report on the convergence of supervisory practices, (vii) statistics regarding the gender-balance on the boards of significant banks, (viii) the EBA pilot on climate risk, (ix) the EBA thematic note on provisioning in the EU vs the US, and (x) summaries of external papers commissioned on the request of ECON.
Författare : Marcel MAGNUS, CRISTINA SOFIA PACHECO DIAS, REBECCA SARAH FANNY SEGALL, KRISTINA GRIGAITE, KATJA KOMAZEC

Digital transformation - why do some significant banks fall behind? EN

25-06-2021 PE 689.440 ECON
Djupanalys
Sammanfattning : This paper shows that larger banks and better capitalised banks invest more in computer software. These findings could reflect that larger banks can attain greater benefits from computer software and that better capitalised banks have more resources to make larger software investments. All the same, smaller and less capitalised banks will also have to make substantial software investments to maintain sustainable businesses, something that supervisors will need to point that out to these banks.
Författare : A.C. Bertay, H. Huizinga

Euro area fiscal policies and capacity in post-pandemic times EN

25-06-2021 PE 651.392 ECON
Studie
Sammanfattning : The main legacy of the post-Covid-19-crisis euro area fiscal framework should be the development of a unique integrated fiscal policy and of a permanent and independent Fiscal Fund to implement it. To arrive at this conclusion, we analyse the challenges and build on current research on the optimal design of a fiscal fund. We characterise the fiscal policy, and the development of the Fund, together with the role and form that the Stability and Growth Pact can take in the new fiscal framework.
Författare : R. Marimon, A. Wicht

UK banks in international markets-Implications of UK-euro area divergence in regulation and supervisory practice EN

24-06-2021 PE 689.438 ECON
Djupanalys
Sammanfattning : The UK enters the post-Brexit period with a regulatory framework that is closely aligned with that of the UK, and stronger in some areas. This paper highlights that the changes in regulatory strategy and the institutional framework that have been announced by the UK will make its bank regulation more responsive, and greater use of proportionality the sector will become more competitive. Competition for EU banks in international markets will intensify, though not due to an erosion of regulatory standards.
Författare : A.Lehmann, Bruegel