Kirkegaard, J.F., (2013), “Economic Reforms in the Euro Area: Fiscal and Macro-structural Challenges”, European Parliament’s Committee on Economic and Monetary Affairs, Σεπτέμβριος.
This paper highlights how recent successful stabilization efforts in the euro area have shifted the main policy challenge from “acute crisis management” to fighting chronic stagnation. Critical policy challenges concerning euro area financial sector reforms and the upcoming banking sector balancesheet assessment and stress test, as well as continuing reducing excessive inactivity levels are highlighted.
To streamline the Country Specific Recommendations (CSRs), it is advocated to focus the recommendations in the future solely on structural reform issues, including banking sector reforms, and leaving budgetary surveillance to dedicated EU procedures. Several proposals to enhance the role of the Euro Group President in promoting the CSRs agenda are also presented.