Wednesday , October 28 2020
Home / Tag Archives: Finance & Financial Regulation

Tag Archives: Finance & Financial Regulation

Common eurobonds should become Europe’s safe asset – but they don’t need to be green

The plan to fund the European Union’s recovery programme via debt issuance has raised hopes that a new type of euro-denominated safe asset could emerge. As a priority, the European Commission needs a strategy to create a liquid and transparent market in EU bonds. For now, funding through EU green bonds would complicate that effort. By: Alexander Lehmann Date: September 28, 2020 Topic: Finance & Financial Regulation To fund its future programmes, SURE (employment support, €100...

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Europe’s recovery gamble

Next Generation EU, was rightly hailed as a major breakthrough: never before had the EU borrowed to finance expenditures, let alone transfers to member states. But the programme and its Recovery and Resilience Facility amount to a high-risk gamble. By: Jean Pisani-Ferry Date: September 25, 2020 Topic: Finance & Financial Regulation This opinion post was originally published in Project Syndicate. To help their pandemic-hit economies recover, European Union leaders agreed in...

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Emerging Europe and the capital markets union

The European Union's capital market union needs a revamp because of Brexit and the deep recession, and to underpin the European Green Deal. In particular, equity capital in the countries of central and eastern Europe is underdeveloped. These countries should take measures to facilitate equity finance, accompanied by reform at EU level. By: Alexander Lehmann Date: September 17, 2020 Topic: Finance & Financial Regulation The European Union’s capital markets union (CMU) plan is...

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Private equity and Europe’s re-capitalisation challenge

Companies are struggling in the coronavirus crisis but solvency support provided by the European Union looks likely to be modest. This will make private equity more important in the recovery, and could create a springboard for longer-term reform to boost private equity. By: Alexander Lehmann Date: September 17, 2020 Topic: Finance & Financial Regulation The ongoing deep recession is certain to leave in its wake a significant number of corporate insolvencies, once current...

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For a better, more sovereign Europe

Keynote address by the German Federal Minister of Finance Olaf Scholz at Bruegel Annual Meetings, 3 September 2020 By: The Sound of Economics Date: September 9, 2020 Topic: European Macroeconomics & Governance Keynote address by the German Federal Minister of Finance Olaf Scholz at Bruegel Annual Meetings, 3 September 2020. This is part of a special feature of the Sound of Economics reporting highlights from Bruegel Annual Meetings, which happened between 1 and 3 September...

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Employment and COVID-19

Testimony before the Economic Affairs Committee at the House of Lords, British Parliament on Employment and COVID-19. By: Guntram B. Wolff Date: September 9, 2020 Topic: European Macroeconomics & Governance On September 8th, 2020 Bruegel’s director Guntram B. Wolff presented testimony before the Economic Affairs Committee at the House of Lords, British Parliament, on the Employment measures put in place to fight the economic crisis following the COVID-19 pandemic.To view the...

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The impact of the crisis on smaller companies and new mechanisms for non-performing loans

The ongoing recession will result in a fresh surge in non-performing loans (NPLs) once payment holidays and moratoria end later this year. NPL investors played a valuable role in tackling the stock of problem loans from the last crisis, but in the aftermath of the current recession more complex financial restructuring will be needed. Governments should facilitate the refinancing of distressed but viable companies, possibly through a special regime for SMEs. In November 2019, the European...

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Boosting the resilience of Europe’s financial system in the coronavirus crisis

Europe has a heavily bank-based financial structure, but bank-based financial structures are associated with higher systemic risk than market-based financial structures. The higher level of systemic risk in Europe suggests caution when pursuing policies that stimulate risk taking and debt creation by banks, especially in the wake of COVID-19. Priority should be given to financial diversification and equity finance. Bank-based and market-based financial structures mobilise savings, allocate...

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The EU’s Opportunity to Turn Its Markets Toward the Future

Meeting the fiscal demands of COVID-19 will require the European Union to borrow on capital markets more than ever, and for European pension funds and households to look more widely for ways to build their nest eggs safely. The EU should take the challenges of the pandemic and Brexit as a chance to get its financial infrastructure house in order. By: Rebecca Christie Date: July 16, 2020 Topic: European Macroeconomics & Governance This article is based on a version first...

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The Wirecard debacle calls for a rethink of EU, not just German, financial reporting supervision

The spectacular collapse of Wirecard AG should serve as a wake-up call for the European Union on the need to pool the relevant supervisory mandates at EU level. Wirecard AG, the Munich-based payments and financial services company that was a member of the DAX index of Germany’s 30 leading blue chip stocks, collapsed spectacularly and filed for insolvency on June 25, 2020. Among many lessons, this disaster has revealed major gaps in audit regulation and accounting enforcement in Germany and by...

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