André Sapir, Dirk Schoenmaker,(2017), “The time is right for a European Monetary Fund”, Bruegel Policy Brief, Issue 4, October The creation of the European Stability Mechanism (ESM) and the banking union were instrumental in stemming the euro-area sovereign crisis. However, both remain incomplete.While the ESM reduces the risk of sovereign debt crises, it still lacks an instrument to deal in an orderly way with insolvency crises. This makes the no-bailout clause of the …Read More

Andre Sapir, Dirk Schoenmaker, (2017), “The Time is Right for a European Monetary Fund”, Bruegel Policy Brief, Isuue 4, October The creation of the European Stability Mechanism (ESM) and the banking union were instrumental in stemming the euro-area sovereign crisis. However, both remain incomplete. While the ESM reduces the risk of sovereign debt crises, it still lacks an instrument to deal in an orderly way with insolvency crises. This makes …Read More

Bloomberg View, (2017), “Europe Needs to Face Its Bad-Loan Problem”, 30 October Financial regulators in the European Union are grappling on several fronts with problems in their banking system. They’ve made some progress, but there’s a pattern: The proposals fall short. Plans for EU-wide deposit insurance have been watered down. The system for resolving failing banks is underfunded. And now controversy has arisen over new rules for dealing with bad …Read More

Russell Cooper, Moritz Meyer, Immo Schot, (2017), “The employment and output effects of short-time work in Germany”, VoxEU, 28 October A major factor behind the ‘German miracle’ – which saw GDP collapse by almost 7% during the Global Crisis but unemployment increase by less than 1% – was a ‘short-time work’ policy that incentivised firms to reduce workers’ hours rather than laying off workers. This column explores the effectiveness of the …Read More

Alfio Cerami, (2017), “European Banking Union as a Self-Fulfilling Prophecy”, LSE, 24 OCtober The establishment of the European Economic and Monetary Union (EMU) has represented one of the most important steps in the process of European integration. In an article published in Politics & Policy, I have argued that the EMU has not simply been the product of historical legacies, the rational choices of actors, or social construction of new economic …Read More

Frieden, Jeffry, Walterm Stefanie, (2017), “Understanding the Political Economy of the Eurozone Crisis”, Annual Review of Political Science, 20: 371-390, May The Eurozone crisis constitutes a grave challenge to European integration. This article presents an overview of the causes of the crisis and analyzes why it has been so difficult to resolve. We focus on how responses to the crisis were shaped by distributive conflicts both among and within countries. …Read More

Ferdinando Giugliano, (2017), “The ECB Shows It Has Won the Market’s Trust“, Bloomberg, 27 October The European Central Bank’s decision to reduce the pace of quantitative easing as of next year is the story of the dog that didn’t bark. For months, the expectation was that this historic announcement would cause disruption in the financial markets, sending bond yields higher and stock prices lower. What we saw instead was a very orderly and even …Read More

Gregory Claeys, (2017), “The missing pieces of the euro architecture”, Bruegel, 26 October What are the remaining fragilities of the Euro architecture? This policy contribution assesses the institutional reforms put in place during and after the crisis and make some proposals for a coherent economic governance framework to make Europe’s monetary union more resilient. Relevant Posts Buti, Marco, Deroose, Servaas, Leandro, José, Giudice, Gabriele, (2017), «Completing EMU», VoxEU, 13 July …Read More