IFRS Sustainability Requires Further Governance Reform
by Nicolas Véron on 09 December 2009
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Category: POLICY CONTRIBUTIONS
Topics: Financial markets and regulation
This Policy Contribution reproduces the text of a letter sent by Senior Fellow Nicolas Véron to Gerrit Zalm, the Chairman of the International Accounting Standards Committee Foundation (IASCF) in response to the Foundation's public consultation on Part 2 of its Constitution Review. Véron writes that a broader strategic readjustment on the part of the IASCF is necessary if the Foundation hopes to regain the support of the global investment community, its most crucial group of stakeholders. The Foundation must make itself more responsive and accountable to the investment community, a requirement that has become more urgent due to the crisis.
The Baltic Challenge and Euro-Area Entry
by Zsolt Darvas on 30 November 2009
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Category: POLICY CONTRIBUTIONS
Topics: New Member States, Enlargement and Neighbourhood
Resident Fellow Zsolt Darvas takes a look at the issue of the Baltic states - Estonia, Latvia and Lithuania - and the challenges facing those three countries in the aftermath of the financial crisis. He argues that because it is in the broader European interest to prevent a collapse in the Baltics, the best option is immediate euro entry at a suitable exchange rate supported by appropriate resolution in order to manage the resulting debt overhang. However, there seems to be no legal basis for this under the current euro accession criteria. Furthermore, the economic foundations of the criteria are fundamentally flawed, as euro-area members continue to violate the criteria while the EU's expansion to 27 members has made the criteria tougher for new member states to meet themselves. Ultimately, the European Council has the ability to reform the criteria without a formal treaty change. The Council should do so, the author argues, and allow for more meaningful benchmarks for all future euro-area applicants.
Cold Start for the Green Innovation Machine
by , Philippe Aghion, Reinhilde Veugelers on 23 November 2009
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Category: POLICY CONTRIBUTIONS
Topics: Climate change and energy
This Policy Contribution accompanies the Policy Brief, “No Green Growth Without Innovation”. Written by Senior Non-Resident Fellow Philippe Aghion, Senior Resident Fellow Reinhilde Veugelers and Researcher Clément Serre, this paper discusses the state of green innovation and goes into more depth in discussing the current problems in the area. Examining research and development, patent, and venture capital data, the authors point out that there is momentum for private investment in green technologies. However, they argue that, thus far, the implicit tax rate on energy in the EU27 is too low and fragmented, the carbon price in the EU Emissions Trading System is too volatile, and the public R&D expenditures dedicated to energy and environment are too low. They conclude that immediate state intervention is necessary, at least at the onset, to ensure that the ‘green innovation machine’ gets properly started.
Can A Less Boring ECB Remain Accountable?
by Jean Pisani-Ferry, Jakob von Weizsäcker on 27 September 2009
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Category: POLICY CONTRIBUTIONS
Topics: Budgetary and monetary policies, Financial markets and regulation, European and global governance
Through Bruegel's role on the Monetary Experts Panel for the European Parliament's Committee on Economic and Monetary Affairs, Bruegel scholars contributed to the Committee's Monetary Dialogue with the European Central Bank meeting on 28 September. In this briefing paper for the Panel, Director Jean-Pisani Ferry and Resident Fellow Jakob von Weizsacker point out that, in the wake of the financial crisis, the ECB will take on much more responsibility for macro-prudential supervision of the financial system. With this added responsibility, however, comes serious questions about the mechanisms in place to ensure the ECB's accountability. Previously focused almost solely on price stability, the ECB will now likely be asked to increase its discretionary decision-making, especially in dealing with financial regulation. The accompanying accountability questions, the authors say, need to be addressed proactively.
The G20 is not just a G7 with extra chairs
by Agnès Bénassy-Quéré, Rajiv Kumar, Jean Pisani-Ferry on 21 September 2009
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Category: POLICY CONTRIBUTIONS
Topics: Emerging economies and development, European and global governance
The G20 is not just a G7 with Extra Chairs is a joint paper written by Agnes Benassy-Quere, Rajiv Kumar and Jean Pisani-Ferry (Director of Bruegel) following the International Cooperation in Times of Global Crisis: Views from G20 Countries conference in Delhi on 14th and 15th of September, organised by Bruegel, CEPII and ICRIER. The publication draws together the authors‘ conclusions from the Delhi conference and reviews the real role of the G20, while questioning where the non-G7 interests fit into the group‘s agenda.