A European Exit Strategy
by Jürgen von Hagen, Jean Pisani-Ferry, Jakob von Weizsäcker on 14 October 2009
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Category: POLICY BRIEFS
Topics: Budgetary and monetary policies, Financial markets and regulation
This Policy Brief was adapted from a paper written by the three authors and presented by Bruegel Director Jean Pisani-Ferry at the informal ECOFIN Council meetings in Gothenburg, Sweden, on 1 Oct. In the brief, the authors argue that bank recapitalisation and restructuring should be a matter of urgency for EU member states and that governments should not undertake the necessary fiscal and monetary policy exit until problems within the financial sector are addressed. The authors also recommend that European states set debt targets to be reached by the end of 2014 and explain that proper incentives are necessary to ensure that an exit strategy, once implemented, is done so in coordination between various institutional actors. Such a policy framework should be in place by summer 2010, the authors say, in order to avoid a buildup of financial instability during the process.
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 Financial Times: Why the Issue of Convergence Should Remain on Backburner
by Nicolas Véron on 23 September 2009
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Category: OPINION PIECES AND COLUMNS
Topics: Financial markets and regulation
Ahead of the G20 summit in Pittsburgh, Resident Scholar Nicolas Véron argues that the project to converge standards between the American Financial Accounting Standards Board and the International Accounting Standards Board has moved too hastily. He recommends that the issue of convergence should be left on the backburner and that the FASB and the IASB should instead focus on ensuring high-quality accounting to meet the needs of capital providers.
The Pittsburgh G20 Checklist
by Ignazio Angeloni on 18 September 2009
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Category: POLICY CONTRIBUTIONS
Topics: Financial markets and regulation, European and global governance
In this timely policy contribution, Visiting Scholar Ignazio Angeloni suggests that the Pittsburgh G20 may represent policymakers' last chance at real financial market reform. He develops a shortlist of recommendations for world leaders to tackle at the summit and says that world leaders at the summit must strengthen the stability of the financial sector while avoid micro-management. G20 leaders must also strengthen the global financial governance structures and work on an IMF-led framework to containing the development of future current-account imbalances across nations. This latest version also includes a postscript written by Angeloni and published in the October 2009 issue of Intereconomics: Review of European Economic Policy judging the outcome of the summit.
La Tribune: Europe's Oligarchs
by Nicolas Véron on 15 September 2009
Category: OPINION PIECES AND COLUMNS
Topics: Financial markets and regulation
In his column in the French newspaper, La Tribune, Resident Scholar Nicolas Véron examines whether business and financial oligarchies exist in Europe and whether they have too much influence over the political process. He argues that policymakers must use effective competition policy to limit the economic power of big business while guarded against those special interests. The column was also published in Cajing (China), Czech Business Weekly, the Russian edition of Forbes magazine, and the Australian Financial Review.