Ferdinando Giugliano, (2017), “Europe’s Central Bank Is Right to Get Tough on Bad Loans”, BloombergView, 6 December A power struggle has set three of Europe’s most important institutions against each other. The European Central Bank, the European Parliament and the European Council are fighting over how banks should treat bad loans. The ECB has taken the toughest stance, but also the most appropriate one to the problem. If politicians want to …Read More
Europe’s Crisis Starts at Home
Mark Leonard, (2017), “Europe’s Crisis Starts at Home”, Project Syndicate, 4 December According to conventional wisdom, the biggest threat to the European project is “illiberal” saboteurs on the periphery of the European Union who have decided not to play by the rules. But what this narrative misses is the even deeper divide within EU member states, including bastions of liberalism such as France and Germany. Relevant Posts Ferdinando Giugliano,(2017), «Europe …Read More
OECD Consumer Price Index
OECD/OECD Consumer Price Index/ 5 December 2017 Annual inflation in the OECD area slowed to 2.2% in October 2017, compared with 2.3% in September 2017. This slight decrease in the annual rate of inflation was driven by energy and food prices. Energy price inflation slowed to 5.8% in October, compared with 7.7% in September while food price inflation slowed to 1.8% from 1.9% in September. Excluding food and energy, inflation increased …Read More
Real convergence in the euro area: a long-term perspective
Juan Luis Diaz del Hoyo, Ettore Dorrucci, Frigyes Ferdinand Heinz, Sona Muzikarova, (2017), “Real convergence in the euro area:a long-term perspective”, European Central Bank Occasional Paper Series No 203, December In the euro area, there is mixed evidence that the GDP per capita of lower-income economies has been catching up with that of higher-income economies since the start of monetary union. The significant real convergence performance of some of the …Read More
The Populist Tail Wagging the German Dog
Slawomir Sierakowksi, (2017), “The Populist Tail Wagging the German Dog”, Project Syndicate, 30 November Despite a growing chorus calling for reform of the eurozone and the European Union, the chances for meaningful change are diminishing. The main obstacle is Germany, whose economic interests lie not just with the status quo, but also with some of the populist governments that EU reformers must rebuff if they are to succeed. Relevant Posts …Read More
R&D expenditure in the EU remained stable in 2016 at just over 2% of GDP
Eurostat/R&D expenditure in the EU remained stable in 2016 at just over 2% of GDP/1 December 2017 In 2016, the Member States of the European Union (EU) spent all together over €300 billion on Research & Development (R&D). The R&D intensity, i.e. R&D expenditure as a percentage of GDP, remained stable at 2.03% in 2016. Ten years ago (2006), R&D intensity was 1.76%. With respect to other major economies, R&D intensity in the EU …Read More
Beyond the Juncker and Schäuble visions of euro-area governance
Guntram B. Wolff, (2017), “Beyond the Juncker and Schäuble visions of euro-area governance”, Bruegel, 1 December Two diametrically opposed visions of the euro-area architecture have been put forward. Departing from both Juncker’s and Schäuble’s proposals, the author identifies new ideas to develop the euro-area governance Relevant Posts Jean Tirole, (2017), «The European Project Needs a New Long-Term Vision», Bloomberg View, 30 October Bloomberg View, (2017), «Getting Serious About Europe’s Fiscal …Read More
Household energy prices in the EU down compared with 2016
EUROSTAT/Household energy prices in the EU down compared with 2016/29 November 2017 Ιn the European Union (EU), household electricity prices slightly decreased (-0.5%) on average between the first half of 2016 and the first half of 2017 to stand at €20.4 per 100 kWh. Across the EU Member States, household electricity prices in the first half of 2017 ranged from below €10 per 100 kWh in Bulgaria to more than €30 per 100 kWh …Read More
The euro zone’s boom masks problems that will return to haunt it
The Economist, (2017), “The euro zone’s boom masks problems that will return to haunt it”, 2 December “WHAT does not kill me makes me stronger,” wrote Nietzsche in “Götzen-Dämmerung”, or “Twilight of the Idols”. Alternatively, it leaves the body dangerously weakened, as did the illnesses that plagued the German philosopher all his life. The euro area survived a hellish decade, and is now enjoying an unlikely boom. The OECD, a club …Read More
Euro area annual inflation up to 1.5%
Eurostat/Euro area annual inflation up to 1.5% /30 Νovember 2017 Euro area annual inflation is expected to be 1.5% in November 2017, up from 1.4% in October 2017, according to a flash estimate from Eurostat, the statistical office of the European Union. Looking at the main components of euro area inflation, energy is expected to have the highest annual rate in November (4.7%, compared with 3.0% in October), followed by food, alcohol & …Read More