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Posted on 24-03-2020

Is the current “fit and proper” regime appropriate for the Banking Union?

24-03-2020

EU rules on fit and proper are a patchwork of high-level principles and national law. Deep cross-country differences affect both the assessment process and the criteria used. New Level 1 measures are required to impose common requirements on knowledge, experience, good repute, independence and conflicts of interest, and to unify procedural aspects across Member States. Meanwhile, the ECB should assign a public score to individual board members and disclose the motivations behind its fit and proper ...

EU rules on fit and proper are a patchwork of high-level principles and national law. Deep cross-country differences affect both the assessment process and the criteria used. New Level 1 measures are required to impose common requirements on knowledge, experience, good repute, independence and conflicts of interest, and to unify procedural aspects across Member States. Meanwhile, the ECB should assign a public score to individual board members and disclose the motivations behind its fit and proper assessments.

External author

Andrea RESTI

Posted on 10-03-2020

Trade and competitiveness policies in the European Council

10-03-2020

In recent years, international trade has gained increasing visibility on the European Council agenda. A high level of economic interconnectedness and the ineluctable rise of emerging economies on the world stage, notably China, have highlighted differences across economic systems and divergences over the impact of certain policies and practices in the global economy. Moreover, the United States administration's pursuit of an 'America first' foreign policy has been accompanied by a trade policy aimed ...

In recent years, international trade has gained increasing visibility on the European Council agenda. A high level of economic interconnectedness and the ineluctable rise of emerging economies on the world stage, notably China, have highlighted differences across economic systems and divergences over the impact of certain policies and practices in the global economy. Moreover, the United States administration's pursuit of an 'America first' foreign policy has been accompanied by a trade policy aimed primarily at reducing trade deficits with partners. The existential threat which the World Trade Organization now faces, as the core of the multilateral trading system, has compounded growing trade tensions and translated into a highly unstable global environment. The European Council has reacted to these developments promptly, with the last three years seeing the adoption of measures to strengthen the European Union's capacity to address such challenges. It has placed high emphasis on the need for the EU to be able to defend itself against unfair trade practices, through strengthened defence instruments, greater surveillance of foreign direct investment, and broader access to public procurement markets abroad. The objectives set out in its Strategic Agenda for 2019-24 reflect a need for a more assertive and united European Union on the global stage, able to tackle the technological and environmental challenges of the coming decade.

Posted on 26-02-2020

Macroeconomic Imbalances Procedure: has it worked in practice to improve the resilience of the euro area?

24-02-2020

The main aim of the paper is to assess the contribution of the Macroeconomic Imbalance Procedure (MIP) to its original objectives. It analyses whether the European Union and the Euro Area are today better equipped to identify and prevent unsustainable macroeconomic developments in the future. It provides an overview of how the MIP has worked in practice. It presents some stylised trends in macro variables and how the procedure tracks them. It provides a counterfactual exercise on how the procedure ...

The main aim of the paper is to assess the contribution of the Macroeconomic Imbalance Procedure (MIP) to its original objectives. It analyses whether the European Union and the Euro Area are today better equipped to identify and prevent unsustainable macroeconomic developments in the future. It provides an overview of how the MIP has worked in practice. It presents some stylised trends in macro variables and how the procedure tracks them. It provides a counterfactual exercise on how the procedure would have helped to address the underlying problems in those Member States that required financial assistance during the financial and economic crisis. The main policy recommendations of the study are that some re-tooling of the MIP is necessary and that increasing its ownership at the national level is essential.

External author

Lorenzo CODOGNO

Posted on 19-02-2020

European arrest warrant

19-02-2020

The European Arrest Warrant has led to simplified and faster surrender procedures for suspects and sentenced persons. However, trust in the system needs to be enhanced through proper implementation and further harmonisation of substantive and procedural criminal law.

The European Arrest Warrant has led to simplified and faster surrender procedures for suspects and sentenced persons. However, trust in the system needs to be enhanced through proper implementation and further harmonisation of substantive and procedural criminal law.

Addressing health inequalities in the European Union: Concepts, action, state of play

19-02-2020

Tackling socially determined inequalities in health, both between and within European Union (EU) Member States, is still a major challenge. This analysis describes the main concepts and gives examples for health inequalities across the EU. It then presents an overview of the work accomplished at international and EU levels. It shows, in particular, how the EU institutions, bodies and agencies have contributed to reducing health inequalities, notwithstanding that Member States have the main responsibility ...

Tackling socially determined inequalities in health, both between and within European Union (EU) Member States, is still a major challenge. This analysis describes the main concepts and gives examples for health inequalities across the EU. It then presents an overview of the work accomplished at international and EU levels. It shows, in particular, how the EU institutions, bodies and agencies have contributed to reducing health inequalities, notwithstanding that Member States have the main responsibility for health policy. The analysis then goes on to depict stakeholder views, before closing with an outlook on avenues for further action.

Posted on 12-02-2020

Religion and the EU's external policies: Increasing engagement

12-02-2020

Religion has been emerging as a new dimension in the EU's external policies. This paper provides an overview of the principles, institutional set-up and policies underpinning the EU's approach to religious issues in third countries. Nine case studies meanwhile serve to illustrate the important role played by religion in the foreign policies of a number of different countries worldwide.

Religion has been emerging as a new dimension in the EU's external policies. This paper provides an overview of the principles, institutional set-up and policies underpinning the EU's approach to religious issues in third countries. Nine case studies meanwhile serve to illustrate the important role played by religion in the foreign policies of a number of different countries worldwide.

Posted on 05-02-2020

Communication During Unconventional Times: The ECB’s Approach

15-01-2020

During the past five years, communication of the ECB has changed drastically, not least with the introduction of forward guidance. Against this backdrop, this note assesses how successful the central bank has been in influencing financial markets and expectations and discusses the challenges for future ECB communication. This document was provided by Policy Department A at the request of the Committee on Economic and Monetary Affairs.

During the past five years, communication of the ECB has changed drastically, not least with the introduction of forward guidance. Against this backdrop, this note assesses how successful the central bank has been in influencing financial markets and expectations and discusses the challenges for future ECB communication. This document was provided by Policy Department A at the request of the Committee on Economic and Monetary Affairs.

External author

Eddie GERBA and Corrado MACCHIARELLI

Financial Stability in the Euro Area

15-01-2020

Risks to financial stability in the euro area appear to be contained for the time being, but could be substantial in the longer run. The European financial system is still not crisis-proof. We argue that a deposit insurance schemes are not a good option to increase overall financial stability and higher equity ratios for banks are the appropriate approach to make the financial system safer. This document was provided by Policy Department A at the request of the Committee on Economic and Monetary ...

Risks to financial stability in the euro area appear to be contained for the time being, but could be substantial in the longer run. The European financial system is still not crisis-proof. We argue that a deposit insurance schemes are not a good option to increase overall financial stability and higher equity ratios for banks are the appropriate approach to make the financial system safer. This document was provided by Policy Department A at the request of the Committee on Economic and Monetary Affairs.

External author

Salomon FIEDLER, Klaus-Jürgen GERN

The ECB’s Communication Strategy: Limits and Challenges After the Financial Crisis

15-01-2020

Given its central role in public accountability and in the formation of expectations, it is important to reflect on ways to improve the ECB’s communication policy. Communication should not generally strive for maximum transparency. The optimum degree of transparency varies between different aspects of monetary policy and banking supervision. Although the ECB already communicates very openly with the public and achieves a very high level of transparency in all aspects, we see room for improvement ...

Given its central role in public accountability and in the formation of expectations, it is important to reflect on ways to improve the ECB’s communication policy. Communication should not generally strive for maximum transparency. The optimum degree of transparency varies between different aspects of monetary policy and banking supervision. Although the ECB already communicates very openly with the public and achieves a very high level of transparency in all aspects, we see room for improvement in its communication strategy in several respects. This document was provided by Policy Department A at the request of the Committee on Economic and Monetary Affairs.

External author

Kerstin BERNOTH and Geraldine DANY-KNEDLIK

Reaching a Wider Audience: Is the ECB Trending?

15-01-2020

Central banks are increasingly recognising the importance of communicating with the wider public. We document that interest in monetary policy is intermittent, usually linked to major decisions and/or personnel changes. The ECB should not expect that every one of its decisions is noticed by the general public. The Monetary Dialogue fulfils the typical function of a representative democracy in which citizens delegate to their elected representatives the task of monitoring policy implementation by ...

Central banks are increasingly recognising the importance of communicating with the wider public. We document that interest in monetary policy is intermittent, usually linked to major decisions and/or personnel changes. The ECB should not expect that every one of its decisions is noticed by the general public. The Monetary Dialogue fulfils the typical function of a representative democracy in which citizens delegate to their elected representatives the task of monitoring policy implementation by independent institutions. This document was provided by Policy Department A at the request of the Committee on Economic and Monetary Affairs.

External author

Daniel GROS, Angela CAPOLONGO

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The content of all documents contained in the Think Tank website is the sole responsibility of the author and any opinions expressed therein do not necessarily represent the official position of the European Parliament. It is addressed to the Members and staff of the EP for their parliamentary work.

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