Posted by hkarner - 8. September 2016
Marco Buti, Muriel Lacoue-Labarthe
07 September 2016, voxeu
The Eurozone Crisis has taken a significant toll – both economic and political – on EU member states as well as the Union as a whole. This column identifies three elements that are key to a working solution for continued union: overcoming the intergovernmental method that has dominated EU decision‑making since the crisis, avoiding the seemingly easy route of blaming all evils on ‘Brussels’, and a more unified external representation in global economic governance.
The economic and financial crisis that started eight years ago has taken a taxing toll on European economies. The cost has not only been economic, but also political. In the wake of this crisis, political scepticism has grown, as shown by the number of ruling parties and coalitions that lost elections during the heat of the crisis. Meanwhile, populist parties with an anti-European, anti-euro stance have emerged and turned out stronger in recent elections. The discontent with the present state of the EU culminated with the outcome of the Brexit referendum (O’Rourke 2016).
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Posted in Artikel | Verschlagwortet mit: Brexit, Buti, EFSF, ESM, Euro, Europe, Lacoue-Labarthe | Leave a Comment »
Posted by hkarner - 28. August 2016
Marco Buti, José Leandro, Plamen Nikolov
25 August 2016, voxeu
The fragmentation of financial systems along national borders was one of the main handicaps of the Eurozone both prior to and in the initial phase of the crisis, hindering the shock absorption capacity of individual member states. The EU has taken important steps towards the deeper integration of Eurozone financial markets, but this remains incomplete. This column argues that a fully-fledged financial union can be an efficient economic shock absorber. Compared to the US, there is significant potential in terms of private cross-border risk sharing through the financial channel, more so than through fiscal (i.e. public) means.
The prime objective of Europe’s Economic and Monetary Union (EMU) is to foster stability and economic growth. But for this to happen, the EMU needs to be able to: first, better prevent crises by fostering sustainable fiscal and economic policies in each of the participating member states; and second, better absorb shocks – individually and collectively – whenever they occur.
Posted in Artikel | Verschlagwortet mit: Banking Union, Buti, EMU, Euro, Finanzkrise, Leandro, Nikolov, Shock, voxeu | Leave a Comment »
Posted by hkarner - 11. Dezember 2015
Marco Buti, Vitor Gaspar 10 December 2015, voxeu
Director General, DG Economic and Financial Affairs, European Commission
Director of the Fiscal Affairs Department, International Monetary Fund
Designing fiscal policy for today’s complex and uncertain economic climate is a problem that perplexes governments worldwide. This column proposes a solution – a new fiscal architecture with strengthened but budget-neutral automatic stabilisers. It won’t be easy, but overcoming predominantly political challenges will help foster steady and enduring growth.
Several years after the peak of the Global Crisis, substantial risks to the global economy abound. Prospects for economic growth have been repeatedly marked down. Public debt to GDP ratios in many Eurozone countries are at levels not seen since World War II. Several countries are significantly out of step with their medium-term fiscal targets. Monetary policy in several major economies is constrained by the zero lower bound. China, the largest economy in the world in purchasing power parity terms, is undergoing an epochal economic rebalancing and ensuing growth moderation, with important spillovers.
Against this background of heightened risks and uncertainties, constrained monetary policy, and limited budgetary space, how can fiscal policy contribute to steady and enduring growth? Here, we argue that fiscal stabilisation through automatic stabilisers can play a prominent role. Den Rest des Beitrags lesen »
Posted in Artikel | Verschlagwortet mit: Buti, Fiscal Policy, Gaspar, Growth | Leave a Comment »
Posted by hkarner - 31. März 2014
Marco Buti, Maria Demertzis, João Nogueira Martins (all from European Commission), 30 March 2014
Although progress has been made on resolving the Eurozone crisis – vulnerable countries have reduced their current-account deficits and implemented some reforms – more still needs to be done. This column argues for a ‘consistent trinity’ of policies: structural reforms within countries, more symmetric macroeconomic adjustment across countries, and a banking union for the Eurozone.
The Commission is delivering its part of the consistent trinity. As the European Parliament, Council, and Commission reach important agreements on the banking union, the Commission has been monitoring progress made by countries in terms of the two first aspects of the consistent trinity.
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Posted in weitere Artikel | Verschlagwortet mit: Banking Union, Buti, Euro, Finanzkrise, voxeu | Leave a Comment »
Posted by hkarner - 11. Januar 2014
Marco Buti (European Commission), 8 January 2014, voxeu
Though in the past two years substantial progress has been made in completing the structure of Europe’s Economic and Monetary Union, not all economic inconsistencies have been solved. This column discusses three main challenges that still need to be addressed. First, sound fiscal policies need to be conducted while keeping sustainable welfare systems. Second is the conflict between policy objectives and economic realities – vulnerable economies cannot reduce their debts and simultaneously gain competitiveness. Third, financial stability and integrated financial markets cannot be established unless the relationship between banks and their sovereigns is reformed. Addressing each of these challenges is important, and it could benefit all Eurozone members.
While it would be premature to declare victory, owing to sustained policy efforts at all institutional levels, major progress has been made in the past two years that has put Economic and Monetary Union (EMU) on much firmer ground. All strands of economic policymaking have been working together to overhaul economic governance, to ensure the efficient transmission of monetary policy, and to create effective financial firewalls. What made this possible was the clear political determination to safeguard the integrity and future of EMU. Den Rest des Beitrags lesen »
Posted in Artikel | Verschlagwortet mit: Banken, Banking Union, Buti, Competitiveness, Euro, Europe, Finanzkrise, Inflation, voxeu, Welfare States | Leave a Comment »