Select Page

Author: Bruegel

Europe must seize this moment of opportunity

This opinion piece was also published in El Economista, Le Monde and Der Spiegel.   After years of despondency, there is new and positive momentum in Europe. With the French electing Emmanuel Macron and a broad recovery in the euro area, leaders in Brussels and national capitals have an opportunity to push ahead with long-needed reforms. Simultaneously, the calamities occurring in British and US politics serve as a useful reminder that “we Europeans must really take our destiny into our own hands”, as the German chancellor Angela Merkel recently put it. Nevertheless, these moments of opportunity can be short...

Read More

Economic Implications of Further Harmonisation of Electronic Communications Regulation in the EU

This paper was published in Intereconomics One of the ways in which the European Commission has sought over the years to strengthen the European single market is by means of increased harmonisation of the regulation of electronic communications. To the extent that the European Union functions as a confederation of somewhat autonomous member states, however, there are both practical and political limits to the degree of harmonisation that is realistically desirable or achievable. In this paper, the authors explore the potential costs and benefits of increased centralisation or harmonisation in two key electronic communications policy areas: market entry and spectrum...

Read More

The EU and the US: a relationship in motion

The legacy of the financial crisis has left a different trail in the EU economy by comparison to that of the US. Almost a decade after the start of what was undoubtedly the worst financial crisis in the last 50 years, the US has managed to restore financial stability and deliver a convincing path back to growth. The EU, by contrast, has not achieved a credible return to economic vigour. It is true that Europe has seen some renewed growth recently, but it remains weak and precarious. This is in part due to the EU’s weaker institutional resilience. High...

Read More

Italian economic growth and the Euro

Introduction. This post tries to answer the question of whether the Euro has a responsibility in the poor growth performance of Italy, as some Italian politicians have claimed. While in economics there are no 100 per cent certainties, the evidence accumulated in this post is that it is unlikely that the Euro has a responsibility in the dismal growth performance of Italy over the last two decades or so. Since there are other, more plausible, possible causes of Italian stagnation, looking at the Euro is not just misguided but utterly damaging, as it distracts from taking the measures needed...

Read More

The international effects of ECB’s monetary policy

In a recent speech, ECB’s Executive Board Member Benoit Coeuré discussed the international effects of the ECB’s asset purchase programme. The data show a turnaround in capital flows in the Euro Area from net inflows to net outflows starting in mid-2014, after the ECB announced its credit easing package. Asset purchase programmes are shown to have had spillover effects on other countries via capital flows and relative asset price movements. The evidence does not suggest that these capital flows have led to major exchange rate movements. Rather, exchange rates seem to have responded to forward-looking interest rate differentials. Asset...

Read More

Building positive incentives: the potential of coalitions for sustainable finance

This blog summarises the arguments of a recent essay by the author: Investing for the common good: a sustainable finance framework Introduction In 2015, the United Nations developed the 2030 Agenda for Sustainable Development, setting 17 Sustainable Development Goals (SDGs) intended to stimulate action over the 2015-2030 period within the economic, social and environmental domains. However, achieving these goals in the corporate sphere is challenging. Companies and investors typically do not take account of social and environmental externalities in their decision making. The problem is further aggravated by the short timeframes that executives and investors work in, since most of...

Read More

Precautionary recapitalisation: time for a review?

This paper was provided at the request of the European Parliament’s Economic and Monetary Affairs Committee, in advance of the public hearing with the Chair of the Single Resolution Board on 11 July 2017. The opinions expressed in this document are the sole responsibility of the author and do not necessarily represent the official position of the European Parliament. The original paper is available on the European Parliament’s webpage (here). © European Union, 2017. For helpful feedback on an early draft, the author thanks Alexander Lehmann, André Sapir, Dirk Schoenmaker and Guntram Wolff at Bruegel, and several other experts...

Read More

How to make finance a force for sustainability

This blog summarises the arguments of a recent essay by the author: Investing for the common good: a sustainable finance framework Sustainable development is a holistic concept with three aspects: economic, social and environmental. Humanity is facing numerous sustainability challenges. Looking at the environment, we see climate change, land-use change, biodiversity loss and depletion of natural resources all destabilising the earth. And on the social front, poverty, hunger and a lack of health care reveal that many people live below basic social standards. Sustainable development means that current and future generations should have the resources they need, such as food,...

Read More