Gulati, Mitu, Buchheit, Lee C., (2013), “Walking back from Cyprus”, www.voxeu.org, 20 Μαρτίου. Eurozone leaders’ radical step of putting insured depositors in Cypriot banks in harm’s way was not their only option. This column argues that none of the alternatives were pleasant but some were less ominous.
Cyprus is different
Annunziata, Marco, (2013), “Cyprus is different”, www.voxeu.org, 20 Μαρτίου. The Cyprus rescue package has elicited sharp reactions. This column argues that a tax on deposits is logical given the limited options, but guaranteed deposits should be spared on fairness and systematic grounds; a 15% tax on big deposits would be enough. Contagion is unlikely since Cyprus is different. Italian and Spanish savers are already alert to surprises such as the …Read More
If Europe Doesn’t Stand Up
Bastasin, Carlo, (2013), “If Europe Doesn’t Stand Up”, Brookings Institute, 20 Μαρτίου. Like what happens to less intelligent creatures, there was also a sudden disavowel of paternityin the Cypriot mess. No one in Europe admits responsibility for the project of forced confiscation on all bank deposits, also the more modest ones. A proposal that, while necessary, will not survive to its temerity and is putting in danger the stability of …Read More
The case for policy change: Democratic legitimacy of EMU cannot be an afterthought in solving the crisis
Underhill, Geoffrey, Blom, Jasper, (2013), “The case for policy change: Democratic legitimacy of EMU cannot be an afterthought in solving the crisis”,www.voxeu.org, 19 Μαρτίου. David Cameron’s promise of a referendum on British participation in the EU has re-ignited the debate about the EU’s democratic legitimacy, just as the struggle to overcome the crisis continues. This column argues that in order to both successfully resolve the crisis and maintain states’ ability …Read More
Europe’s Lost-and-Found Decade
Eichengreen, Barry, (2013), “Europe’s Lost-and-Found Decade”, www.project-syndicate.org, 19 Μαρτίου. Sentiment in European financial markets has turned. For the moment, the possibility of a Greek exit from the eurozone is off the table. If interest-rate spreads on Spanish and Italian government bonds are any guide, bondholders are no longer betting on a eurozone breakup. European stocks even rose in the week following last month’s inconclusive Italian elections. Investors evidently believe that …Read More
Striking the right balance? An uneventful summit despite mounting socio-political uncertainties – Post-Summit Analysis
Emmanouilidis, Janis A., (2013), “Striking the right balance? An uneventful summit despite mounting socio-political uncertainties – Post-Summit Analysis”, European Policy Centre, 18 Mαρτίου. It was not a summit that will enter the EU’s history books, and there were no new concrete additional measures to counter low economic growth and high (youth) unemployment. But the 14-15 March European Council did send out a subtle message that EU leaders – concerned about …Read More
Cyprus deal: the right intentions but major flaws
Darvas, Zsolt, (2013), ‘Cyprus deal: the right intentions but major flaws’, www.bruegel.org, 18 Μαρτίου. On Saturday morning, after a marathon meeting of the Eurogoup, it was decided to impose a one-time wealth tax on deposits in Cypriot banks: 6.75% on deposits below €100,000 and 9.9% on deposits above this threshold. Involving depositors was a wise decision and a wealth tax is a mild form of bailing-in, as I argued in …Read More
Cyprus: The next blunder
Wyplosz, Charles, (2013), ‘Cyprus: The next blunder’, www.voxeu.org, 18 Μαρτίου. The Cyprus bailout package contains a tax on bank deposits. This column argues that the tax is a deeply dangerous policy that creates a new situation, more perilous than ever. It is a radical change that potentially undermines a perfectly reasonable deposit guarantee and the euro itself. Historians will one day explore the dark political motives behind this move. Meanwhile, we …Read More
European enlargement and the economic crisis: impact and lasting effects
Zahn, Rebecca, (2013), “European enlargement and the economic crisis: impact and lasting effects”, European Trade Union Institute, Working Paper 2013.1. This working paper by Rebecca Zahn of the University of Stirling looks at the effects of the economic crisis on the enlarged European Union and the European Social Model. Starting from an analysis of the well-known Viking and Laval decisions of the European Court of Justice from 2007 and 2008, the …Read More
Will the EU Grow Again ? From EU-27 To EU-36 and Beyond?
Verluise, Pierre, (2013), “Will the EU Grow Again ? From EU-27 To EU-36 and Beyond?”, IRIS – Institut De Relations Internationales Et Strategiques, Μάρτιος. The current uncertainty about the expanding frontiers of the European Union is nourishing anxiety that the European elites seem happy to underestimate. Rather like a boomerang this concern fuels a growing estrangement from the EU idea within the community. Hence, as we enter 2013, there is …Read More