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Tag Archives: euro area

Long term real interest rates fell below zero in all euro area countries

The 10-year real government bond yield, which is the nominal yield deflated by expected inflation, has fallen below zero in Italy and Greece, boosted by increased market confidence for their new governments. Romania is the only remaining EU country with a positive real interest rate. Negative real interest rates vastly help fiscal sustainability and provide a great opportunity to invest in much needed infrastructure and the transition to a carbon-neutral economy. By: Zsolt Darvas Date:...

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Backstage at BAM19: Priorities for Europe’s monetary union

Backstage at the Bruegel Annual Meetings, Nicholas Barrett talks with Zsolt Darvas on Europe's monetary union. By: The Sound of Economics Date: September 5, 2019 Topic: European Macroeconomics & Governance How complete is Europe’s monetary union? Is the euro area ready for a next recession or an economic crisis? What should be the reform priorities? In this podcast, Nicholas Barrett discusses the priorities for Europe’s monetary union, with Zsolt Darvas.

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La Banca centrale europea

This external publication delves into the new responsibility given to the European Central Bank: supervision on banks in the euro-area. It tells its history and illustrates its functions, structure and responsibilities and the exceptional answers to respond to the "perfect storm" of the crisis. By: Francesco Papadia Date: July 31, 2019 Topic: European Macroeconomics & Governance The European Central Bank is an independent and supranational institution with the primary task of...

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Croatia’s path into the banking union

Croatia seems a suitable candidate for euro area accession: there is a tight peg to the euro, high public debt is coming down, and the banking sector is already dominated by euro area banks. But the Eurogroup has rightly targeted reforms of the state’s role in the economy as a precondition for participation in ERM II and the banking union. None of the announced reform plans are new or easily concluded within the timeframe that has now been agreed. By: Alexander Lehmann Date:...

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Europe’s citizens say they want a more political EU

The recent European Parliament election suggests that a growing share of European voters sees things differently from national governments. Whereas citizens clearly used their votes to express policy preferences, very few governments are ready for a more political EU leadership. By: Jean Pisani-Ferry Date: June 4, 2019 Topic: European Macroeconomics & Governance This article was published by Project Syndicate. The most...

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The latest European growth-rate estimates

The quarterly growth rate of the euro area in Q1 2018 was 0.4% (1.5% annualized), considerably higher than the low growth rates of the previous two quarters. This blog reviews the reaction to the release of these numbers and the discussion they have triggered about the euro area’s economic challenges. Two important announcements regarding European economic growth took place in the course of the last two weeks. First, Eurostat announced its preliminary flash estimate for real growth for...

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Spitzenkandidaten visions for the future of Europe’s economy

What are the different political visions for the future of Europe’s economy? Bruegel and the Financial Times organised a debate series with lead candidates from six political parties in the run-up to the 2019 European elections. By: Giuseppe Porcaro Date: May 8, 2019 Topic: European Macroeconomics & Governance European elections are coming, sending voters to the polls to weigh in on the European Union’s next leadership...

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Promoting sustainable and inclusive growth and convergence in the European Union

This speech was delivered by Guntram Wolff at the Informal ECOFIN Meeting in Bucharest on 5 April 2019. By: Guntram B. Wolff Date: April 8, 2019 Topic: European Macroeconomics & Governance This speech, based on the Policy Contribution by Maria Demertzis, André Sapir and Guntram Wolff, was delivered by Guntram Wolff at the Informal ECOFIN Meeting in Bucharest on 5 April 2019.

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Promoting sustainable and inclusive growth and convergence in the European Union

This Policy Contribution was written for the Informal ECOFIN Meeting, Bucharest, 5 April 2019. The authors look at the EU’s economic agenda, discussing the priorities for the next five years. The European Union can look ahead at the next five years from a good economic position. Employment is comparatively high, the recovery has been uninterrupted for several years and income inequality remains less pronounced than elsewhere in the world. But the EU faces nevertheless formidable...

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Whose (fiscal) debt is it anyway?

The authors map how much fiscal debt is in the hands of domestic and foreign holders in the euro area. While the market for debt was much more international prior to the crisis, this trend has since been reversed. At the same time, central banks have become important holders of fiscal debt. Figure 1 depicts the evolution of euro-area general government debt and whether it is in domestic or foreign hands. The investor base varies significantly across countries, but we do observe general...

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