Gulati, Mitu, Buchheit, Lee C., (2013), “Walking back from Cyprus”, www.voxeu.org, 20 March. 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.
Annunziata, Marco, (2013), “Cyprus is different”, www.voxeu.org, 20 March. 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
Eichengreen, Barry, (2013), “Europe’s Lost-and-Found Decade”, www.project-syndicate.org, 19 March. 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
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
Wyplosz, Charles, (2013), ‘Cyprus: The next blunder’, www.voxeu.org, 18 March. 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
Stiglitz, Joseph E., (2013), “What is Italy Saying?”, www.project-syndicate.org, 4 March. The outcome of the Italian elections should send a clear message to Europe’s leaders: the austerity policies that they have pursued are being rejected by voters. The European project, as idealistic as it was, was always a top-down endeavor. But it is another matter altogether to encourage technocrats to run countries, seemingly circumventing democratic processes, and foist upon them …Read More
Darvas, Zsolt, Guntram, Wolff, “Should non-euro area countries join the single supervisory mechanism?”, Bruegel Policy Contribution, Issue 2013/06. Irrespective of the euro crisis, a European banking union makes sense, including for non-euro area countries, because of the extent of European Union financial integration. The Single Supervisory Mechanism (SSM) is the first element of the banking union. From the point of view of non-euro countries, the draft SSM regulation as amended …Read More
Alogoskoufis, George, (2013), “Macroeconomics and Politics in the Accumulation of Greece’s Debt: An econometric investigation, 1975-2009“, The Hellenic Observatory European Institute London School of Economics & Political Science. This paper focuses on an econometric investigation of the macroeconomic and political factors that contributed to Greece’s excessive debt accumulation and its failure to adequately address its fiscal imbalances, from the restoration of democracy in 1974 till the crisis of 2009. The …Read More
European Commission, (2013), Quarterly report on the euro area, 1/2013. The focus section of this edition takes a look at the growth convergence experiences of euro area Member States following the introduction of the euro. Generally speaking, faster growth in relatively poorer countries has helped to narrow income gaps between EU Member States, but this convergence process is weaker for euro area members and appears to have stalled a few …Read More
Delors, Jacques, (2013), ‘Economic Governance in the European Union: Past, Present and Future’, Journal of Common Market Studies, Vol. 51, Issue 2, p.p. 169–178.
