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Tag Archives: European Macroeconomics & Governance

An uncompromising budget

Apart from decisive European Central Bank measures, the EU-wide response to the COVID crisis had been rather weak until the Commission put on the table a drastically new proposal: the creation of a new recovery facility, ‘Next Generation EU’, that would borrow money in the name of the EU to finance EU-wide expenditures. The changes to the proposed standard seven-year budget that primarily focuses on long-term structural issues are however generally small, and funding reductions are...

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Bruegel annual report 2019

The Bruegel annual report provides a broad overview of the organisation's work in the previous year. The annual report includes an overview of Bruegel’s research, governance and financial statements, and takes stock of Bruegel’s accomplishments and impact during 2019. Bruegel will continue to work to develop a proactive European strategy to deal with all the challenges ahead, providing free and open access to its research.

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The European Union’s SURE plan to safeguard employment: a small step forward

The new EU instrument to mitigate unemployment risks during an emergency (SURE) is too modest to have a significant impact the COVID-19 crisis beyond being a first step in the overall recovery plan. By: Grégory Claeys Date: May 20, 2020 Topic: European Macroeconomics & Governance The European Union’s new instrument, the so-called temporary Support to mitigate Unemployment Risks in an Emergency (SURE), will provide temporary support of up to €100 billion in loans to EU...

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The European Central Bank in the COVID-19 crisis: whatever it takes, within its mandate

To keep the euro-area economy afloat, the European Central Bank has put in place a large number of measures since the beginning of the COVID-19 crisis. This response has triggered fears of a future increase in inflation. However, the ECB's new measures and the resulting increase in the size of its balance sheet, even if it were to be permanent, should not restrict its ability to achieve its price-stability mandate, within its legal obligations. By: Grégory Claeys Date: May 20, 2020 Topic:...

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How will COVID-19 impact Brexit? The collision of two giant policy imperatives

The United Kingdom left the European Union on Jan. 31, 2020. Now, the U.K. must decide whether and how to extend the transition period, currently set to expire at the end of 2020. By: Rebecca Christie Date: May 19, 2020 Topic: European Macroeconomics & Governance The United Kingdom left the European Union on Jan. 31, 2020, only 10 months after its initially scheduled departure. That is quite speedy for a major geopolitical shift. As with any tectonic adjustment, the...

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Mapping out the post COVID-19 recovery

COVID-19 has triggered a severe recession and policymakers in European Union countries are providing generous, largely indiscriminate, support to companies. As the recession gets deeper, a more comprehensive strategy is needed. This should be based on four principles: viability of supported entities, fairness, achieving societal goals, and giving society a share in future profits. The effort should be structured around equity and recovery funds with borrowing at EU level. By: The Sound of...

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Save markets to save the single market

It’s time for the EU to make quick and indispensable progress in forming a capital markets union. By: Maria Demertzis Date: May 15, 2020 Topic: European Macroeconomics & Governance Necessary though it was, the temporary relaxation of state aid rules in the EU has brought grave unintended consequences. Through indiscriminate support, the EU is rapidly moving from an even playing field that promotes the “survival of the fittest” to a situation where only those with the “richest...

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The European Union’s post-Brexit reckoning with financial markets

In the negotiations between the European Union and the United Kingdom over their future relationship, we see a high probability of a weak contractual outcome, given the dominance of politics over considerations of market efficiency. In the negotiations between the European Union and the United Kingdom over their future relationship, we see a high probability of a weak contractual outcome, given the dominance of politics over considerations of market efficiency. The EU will thus face a great...

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Navigieren auf Sicht ist für einen grünen Wiederaufschwung nicht genug

This opinion piece was originally published in NZZ. Die Coronavirus-Pandemie und die Massnahmen zu ihrer Bekämpfung haben zum grössten weltweiten Wirtschaftsabschwung seit dem Zweiten Weltkrieg geführt. Unternehmen, private Haushalte und der Staat navigieren in dieser Situation grosser Unsicherheit auf Sicht. So werden Entscheidungen in Unternehmen und Familien möglichst vertagt, bis man wieder klar sehen kann. […] Die Coronavirus-Pandemie und die Massnahmen zu ihrer Bekämpfung haben zum...

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The message in the ruling

The German Constitutional Court's ruling on the ECB's asset purchase programme is open to much criticism but it can hardly be blamed for raising an important question. By: Jean Pisani-Ferry Date: May 12, 2020 Topic: European Macroeconomics & Governance From its pretence to establish itself as a custodian of the custodians to the narrowness of its perspective on central bank policy and the parochial assessment of the distributional consequences of monetary decisions, there is...

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