Is Europe ready for a major banking crisis?
by Nicolas Véron on 09 August 2007
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Category: POLICY BRIEFS
Topics: Financial markets and regulation
Nicolas Véron argues that Europe‘s arrangements for financial stability have been rendered inadequate by the emergence of ‘pan-European banks‘, whose activities span several EU countries. In the event of failure of a pan-European bank, voluntary coordination between national authorities would be unlikely to lead to decisions that best serve Europeans‘ collective interest. The policy brief suggests a two-tier framework in which the challenges posed by pan-European banks are addressed with EU-level prudential arrangements and institutions, while most banks remain covered by the current national supervisory systems.
Transparency would help to address the audit market problem
by Nicolas Véron on 29 July 2007
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Category: POLICY CONTRIBUTIONS
Topics: Financial markets and regulation, European and global governance
Nicolas Véron responds to a consultation by the UK Financial Reporting Council and makes recommendations on how to address the ‘audit market problem‘ resulting from the presence of only four international audit networks. Eventhough serious problems would be created by the disappearance of one of these ‘Big Four‘, policymakers should not try to protect them at any cost. Before envisaging measures on audit firm liability or change in ownership rules, more evidence should be gathered on key issues of the debate, and firms should provide more transparency about their financials and governance arrangements.
The global accounting experiment
by Nicolas Véron on 11 April 2007
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Category: BLUEPRINTS
Topics: Financial markets and regulation
In this essay, Nicolas Véron presents accounting standard-setting as a frontier experiment in international governance, where private initiative can succeed in solving a collective problem that nation-states could not tackle effectively. To make the adoption of International Financial Reporting Standards (IFRS) in Europe and other jurisdictions sustainable, the legitimacy of the International Accounting Standards Board has to be bolstered through significant governance changes; and their implementation and enforcement need to become more consistent, which can only be achieved through reform of the institutional framework.
Global imbalances: time for action
by Alan Ahearne, William R. Cline, Kyung Tae Lee, Yung Chul Park, Jean Pisani-Ferry, John Williamson on 28 February 2007
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Category: POLICY BRIEFS
Topics: Currencies and International finance, Financial markets and regulation, European and global governance
Increasing nervousness in world financial markets give new relevance to the long-standing issues of global current account adjustment. It reminds policymakers that this adjustment, if improperly managed, could lead to further drops in assets prices, disruptions in the global trading system, and possible world recession. The authors of this Policy Brief assess how to achieve an orderly reduction in the large and unsustainable global current account imbalances. The Policy Brief is the result of a joint conference held in Washington, D.C. on February 8 and 9 2007.
Tying hands is not commitment: can fiscal rules and institutions really enhance fiscal discipline?
by Xavier Debrun on 31 December 2006
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Category: WORKING PAPERS
Topics: Budgetary and monetary policies, Financial markets and regulation
Visiting Bruegel Scholar, Xavier Debrun, discusses the role of fiscal institutions, including budget rules and non-partisan agencies, in enhancing fiscal discipline.