Go to eu2do.bruegel.org to read all the Memos, download the individual Memos and send the Memos to your Kindle.

RTEmagicC_fb-cover-image-18.png

‘There is now a  distinct possibility that this crisis will be remembered as the occasion when Europe irretrievably lost ground, both economically and politically’. This was the starting sentence of our memos to the new EU leadership five years ago. Five years later, it is fair to say that this possibility has become a reality. Unemployment has reached record levels and growth has disappointed. Meanwhile, the world outside the EU has continued to change rapidly. Emerging markets in particular have increased their weight in the global economy and in decision making.

The new EU leadership – the president of the European Commission and his team of commissioners, and the presidents of the European Council and of the European Parliament – will have to address pressing challenges. Despite the significant steps taken by Europe – among them the creation of a European Stability Mechanism, the start of a banking union, the strengthening of fiscal rules and substantial structural reforms in crisis countries – results for citizens are still unsatisfactory. It is impossible to summarise all the memos in this volume but a common theme is the need to focus on pro-growth policies, on a deepening of the single market, on better and more global trade integration. Reverting to national protectionism, more state aid for national or European champions – as frequently argued for by national politicians – will not be the right way out of the crisis. On the contrary, more Europe and deeper economic integration in some crucial areas, such as energy, capital markets and the digital economy, would greatly support the feeble recovery. But in other areas, less Europe would also be a highly welcome signal that the new European leadership is serious about subsidiarity. Internal re-organisation of the European Commission to ensure that it better delivers would also be welcome.

Beyond the pressing challenges – above all crisis resolution, jobs and growth – the memo to the presidents recommends that the new EU leadership should make sure that Europe makes the necessary treaty changes to strengthen Economic and Monetary Union and to permit the coexistence within the EU of countries belonging to the euro area and those that have no intention to join it. Working towards a consensus on this within the European Council and with European citizens is crucial for Europe’s future and to enable bold decisions on pressing issues.

Our focus in these memos is on economics. But clearly, political and other challenges have multiplied in the last five years. We therefore offer strategic policy advice that we deem both sensible given the problem at hand and politically achievable.

Regrettably, we have unexpectedly not been able to include in this volume a memo to the new Commissioner for Employment and Social Affairs. Yet, we believe that this Commissioner will have the major task of setting out how to improve Europe’s employment and social performance. In many countries, labour market institutions need to be modernised, for instance by making unemployment insurance systems more efficient. Benchmarking could be a way of converging on more sustainable and equitable social models. But reducing unemployment rates will also require better macroeconomic policies, on which the new Commissioner for Economic and Financial Affairs will have an important role to play.

The memos have all been written by Bruegel scholars and their preparation has been coordinated by Senior Fellow André Sapir. Like all Bruegel publications, the content reflects the views of the author(s), and there has been no intention to write a ‘Bruegel programme’. But the memos have been discussed extensively within the team to improve quality and ensure coherence.

Throughout the preparation of this volume, Bruegel’s editor Stephen Gardner has contributed considerably to improving the formal and substantive quality of the individual memos. Our gratitude goes to him as well as to all of those who have given feedback on drafts of specific memos.

André Sapir and Guntram Wolff

September 2014

About the authors

  • André Sapir

    André Sapir, a Belgian citizen, is Senior Fellow at Bruegel. He is also University Professor at the Université libre de Bruxelles (ULB) and Research Fellow of the London-based Centre for Economic Policy Research.

    Between 1990 and 2004, he worked for the European Commission, first as Economic Advisor to the Director-General for Economic and Financial Affairs, and then as Principal Economic Advisor to President Prodi, also heading his Economic Advisory Group. In 2004, he published 'An Agenda for a Growing Europe', a report to the president of the Commission by a group of independent experts that is known as the Sapir report. After leaving the Commission, he first served as External Member of President Barroso’s Economic Advisory Group and then as Member of the General Board (and Chair of the Advisory Scientific Committee) of the European Systemic Risk Board based at the European Central Bank in Frankfurt.

    André has written extensively on European integration, international trade, and globalisation. He holds a PhD in economics from the Johns Hopkins University in Baltimore, where he worked under the supervision of Béla Balassa. He was elected Member of the Academia Europaea and of the Royal Academy of Belgium for Science and the Arts.

  • Nicolas Véron

    Nicolas Véron is a senior fellow at Bruegel and at the Peterson Institute for International Economics in Washington, DC. His research is mostly about financial systems and financial reform around the world, including global financial regulatory initiatives and current developments in the European Union. He was a cofounder of Bruegel starting in 2002, initially focusing on Bruegel’s design, operational start-up and development, then on policy research since 2006-07. He joined the Peterson Institute in 2009 and divides his time between the US and Europe.

    Véron has authored or co-authored numerous policy papers that include banking supervision and crisis management, financial reporting, the Eurozone policy framework, and economic nationalism. He has testified repeatedly in front of committees of the European Parliament, national parliaments in several EU member states, and US Congress. His publications also include Smoke & Mirrors, Inc.: Accounting for Capitalism, a book on accounting standards and practices (Cornell University Press, 2006), and several books in French.

    His prior experience includes working for Saint-Gobain in Berlin and Rothschilds in Paris in the early 1990s; economic aide to the Prefect in Lille (1995-97); corporate adviser to France’s Labour Minister (1997-2000); and chief financial officer of MultiMania / Lycos France, a publicly-listed online media company (2000-2002). From 2002 to 2009 he also operated an independent Paris-based financial consultancy.

    Véron is a board member of the derivatives arm (Global Trade Repository) of the Depositary Trust and Clearing Corporation (DTCC), a financial infrastructure company that operates globally on a not-for-profit basis. A French citizen born in 1971, he has a quantitative background as a graduate from Ecole Polytechnique (1992) and Ecole Nationale Supérieure des Mines de Paris (1995). He is trilingual in English, French and Spanish, and has fluent understanding of German and Italian.

    In September 2012, Bloomberg Markets included Véron in its second annual 50 Most Influential list with reference to his early advocacy of European banking union.

     

  • Zsolt Darvas

    Zsolt Darvas, a Hungarian citizen, joined Bruegel as a Visiting Fellow in September 2008 and continued his work at Bruegel as a Research Fellow from January 2009, before being appointed Senior Fellow from September 2013. He is also a Senior Research Fellow at the Corvinus University of Budapest.

    From 2005 to 2008, he was the Research Advisor of the Argenta Financial Research Group in Budapest. Before that, he worked at the research unit of the Central Bank of Hungary (1994-2005) where he served as Deputy Head.

    Zsolt holds a Ph.D. in Economics from Corvinus University of Budapest where he teaches courses in Econometrics but also at other institutions since 1994. His research interests include macroeconomics, international economics, central banking and time series analysis.

  • Reinhilde Veugelers

    Prof Dr. Reinhilde Veugelers is a full professor at KULeuven (BE) at the Department of Management, Strategy and Innovation.  She is a Senior Fellow at Bruegel since 2009.  She is also a CEPR Research Fellow, a member of the Royal Flemish Academy of Belgium for Sciences and of the Academia Europeana. From 2004-2008, she was on academic leave, as advisor at the European Commission (BEPA Bureau of European Policy Analysis).  She served on the ERC Scientific Council from 2012-2018 and on the RISE Expert Group advising the commissioner for Research.  She is a member of VARIO, the expert group advising the Flemish minister for Innovation.    She is currently a member of the Board of Reviewing Editors of the journal Science and a co-PI on the Science of Science Funding Initiative at NBER.

    With her research concentrated in the fields of industrial organisation, international economics and strategy, innovation and science, she has authored numerous well cited publications in leading international journals.  Specific recent topics include novelty in technology development,  international technology transfers through MNEs, global innovation value chains, young innovative companies, innovation for climate change,  industry science links and their impact on firm’s innovative productivity, evaluation of research & innovation policy,  explaining scientific productivity,  researchers’ international mobility,  novel scientific research.

    Websites:
    https://feb.kuleuven.be/reinhilde.veugelers
    https://bruegel.org/author/reinhilde-veugelers/

  • Carlo Altomonte

    Carlo Altomonte is Professor of Economics of European Integration at the Social and Political Sciences Department of Bocconi University, and a core faculty member of SDA Bocconi School of Management, where he teaches International Business Environment. He has received the SDA Bocconi Teaching Excellence Award in 2007 and the Bocconi Teaching Innovation Award in 2016. He has been a founder, and the first Director, of the World Bachelor in Business, a unique undergraduate triple degree in Business jointly developed by Bocconi University, the University of Southern California and the Hong Kong University of Science and Technology.

    He is currently the Director of the Globalization and Industry Dynamics unit at the Baffi-Carefin centre of research of Bocconi University, a Non Resident Fellow at Bruegel, a EU think tank, and a Senior Researcher at ISPI, the Italian centre of Studies on International Politics. He has been visiting scholar at the Centre of Economic Performance of the London School of Economics and at the Research Department of the European Central Bank. He has been a visiting professor at the Paris School of Economics (Panthèon-Sorbonne, Paris, France) and KU Leuven (Belgium), and has held short teaching courses at the Wagner School of Government (NYU, New York), Keio University (Tokyo), Fudan University and CEIBS (Shanghai) among others.

    He has been regularly acting as consultant for a number of national and international institutions, including the Italian Government, the United Nations (UNCTAD), the European Parliament, the European Commission and the European Central Bank, analysing the role of international trade and investment and their implication for competitiveness.

    His main areas of research and publication are international trade and investment, the political economy of globalization and its implication on competitiveness. He has published in several leading academic journals, among which Journal of Industrial Economics, European Economic Review, Economic Policy, International Journal of Industrial Organization, Journal of Economic Geography, Journal of International Business Studies, Oxford Bulletin of Economics and Statistics.

  • Georg Zachmann

    Georg Zachmann is a Senior Fellow at Bruegel, where he has worked since 2009 on energy and climate policy. His work focuses on regional and distributional impacts of decarbonisation, the analysis and design of carbon, gas and electricity markets, and EU energy and climate policies. Previously, he worked at the German Ministry of Finance, the German Institute for Economic Research in Berlin, the energy think tank LARSEN in Paris, and the policy consultancy Berlin Economics.

  • Jim O‘Neill

    After being on its board since inception, Jim became a Visiting Research Fellow to Bruegel in September 2013. He planned  to conduct research on aspects of changing global trade, global governance, and measuring better and targeting higher sustainable economic growth.

    Jim worked for Goldman Sachs (GS) from 1995 until April 2013. He joined Goldman in 1995 as a partner, Chief Currency Economist and co-head of Global Economics Research. From 2001 through 2010, he was Chief Economist and head of Economics, Commodities and Strategy Research (ECS). In September 2010, he became Chairman of Goldman Sachs Asset Management (GSAM).

    Prior to joining GS, Jim was head of research, globally, for Swiss Bank Corporation (SBC) from 1991 to 1995. He joined SBC in 1988. Prior to that, he worked for Bank of America and International Treasury Management, a division of Marine Midland Bank.

    Jim is the creator of the acronym BRICs. He has published much research about BRICs (which has become synonymous with the emergence of Brazil, Russia, India and China) and the broader emerging markets, as the growth opportunities of the future. This autumn, Jim is making a series for BBC Radio 4 about Mexico, Indonesia, Nigeria and Turkey, due to be aired in January 2014.

    Jim is on the board of a number of research organisations including, Itinera, the UK-India Round Table and the UKIBC. He is also Chairman of the Greater Manchester Local Enterprise Partnership Advisory Board.

    He is one of the founding trustees of the UK educational charity, SHINE. Jim also serves on the board of ‘Teach for All’ and a number of other charities specialising in education and in September 2013 he became a Non-Executive Director of the UK Government’s Department of Education.

    Previously, Jim served as a Non-Executive Director of Manchester United before it returned to private ownership in 2005.

    In 1978, Jim earned a degree in economics from Sheffield University and in 1982 a PhD from the University of Surrey. He received an Honorary Doctorate from the Institute of Education, University of London, in 2009 for his educational philanthropy.

  • Rainer Münz

    Rainer Münz was a Non-Resident Fellow at Bruegel. He is now a special adviser on Migration and Demography at the European Political Strategy Centre (EPSC). Rainer was also  Head of Research & Knowledge Center at Erste Group, a major retail bank, and Senior Fellow at the Hamburg Institute of International Economics (HWWI).

    He is an expert on population change, international migration and demographic aging, their economic impact and their implications for retail banking and social security systems. He studied at Vienna University, where he earned his PhD in 1978. In 1979 he joined the Austrian Academy of Sciences. Until 1992 he was director of the Institute of Demography at the Austrian Academy of Science. Between 1992 and 2003 he was head of the Department of Demography at Humboldt University, Berlin. He was visiting professor at the Universities of Bamberg (1986), University of California at Berkeley (1986, 1989, 1997-98), Frankfurt (1988), Klagenfurt (1996, 1998), Vienna (2001-02) and Zurich (1992). He  was also a Senior Research Fellow at the Department of the Mathematics of Finance, Vienna Technical University (2001-2002). Since 2010 he teaches at the University of St. Gallen (HSG).

    In addittion to his academic positions, Rainer Münz has worked as a consultant for the European Commission, the OECD and the World Bank. He served as an advisor to the Greek (2003), Dutch (2004) and Slovene (2008) EU presidencies. In 2000-01 he was a member of the German commission on immigration reform (Süssmuth commission). Between 2008 and 2010 he was a Member of the high level “Reflection Group Horizon 2020-2030” of the European Union (so-called EU “Group of the Wise”).

    Rainer Münz is a member of several boards and advisory boards; among them: Center for Migration, Integration and Citizenship at Oxford University (COMPAS, Oxford, UK), European Policy Centre (Brussels), European Forum Alpbach, Institute for the Danube Region and Central Europe (Vienna), International Metropolis Project (Ottawa – Amsterdam), International Organization for Migration (IOM, Geneva), SOT Accountants (Vienna-Graz-Munich), STUWO AG (Vienna), Vienna City Museum, and the World Demographic and Aging Forum (WDA, St. Gallen).

  • Guntram B. Wolff

    Guntram Wolff is the Director of Bruegel. Over his career, he has contributed to research on European political economy and governance, fiscal, monetary and financial policy, climate change and geoeconomics. Under his leadership, Bruegel has been regularly ranked among the top global think tanks and has grown in influence and impact with a team of now almost 40 recognized scholars and around 65 total staff. Bruegel is also recognized for its outstanding transparency.

    A recognized thought leader and academic, he regularly testifies at the European Finance Ministers' ECOFIN meeting, the European Parliament, the German Parliament (Bundestag) and the French Parliament (Assemblée Nationale). From 2012-16, he was a member of the French prime minister's Conseil d'Analyse Economique. In 2018, then IMF managing director Christine Lagarde appointed him to the external advisory group on surveillance to review the Fund’s priorities. In 2021, he was appointed to the G20 high level independent panel on pandemic prevention, preparedness and response. He is also a professor (part-time) at the Solvay Brussels School of Université Libre de Bruxelles, where he teaches economics of European integration.

    He joined Bruegel from the European Commission, where he worked on the macroeconomics of the euro area and the reform of euro area governance. Prior to joining the Commission, he was coordinating the research team on fiscal policy at Deutsche Bundesbank. He also worked as an external adviser to the International Monetary Fund.

    He holds a PhD in economics from the University of Bonn and studied in Bonn, Toulouse, Pittsburgh and Passau. He taught economics at the University of Pittsburgh and at Université libre de Bruxelles. He has published numerous papers in leading academic journals. His columns and policy work are published and cited in leading international media and policy outlets. Guntram is fluent in German, English, French and has good notions of Bulgarian and Spanish.

  • Silvia Merler

    Silvia Merler, an Italian citizen, is the Head of ESG and Policy Research at Algebris Investments.

    She joined Bruegel as Affiliate Fellow at Bruegel in August 2013. Her main research interests include international macro and financial economics, central banking and EU institutions and policy making.

    Before joining Bruegel, she worked as Economic Analyst in DG Economic and Financial Affairs of the European Commission (ECFIN). There she focused on macro-financial stability as well as financial assistance and stability mechanisms, in particular on the European Stability Mechanism (ESM), providing supportive analysis for the policy negotiations.

    Between May 2011 and August 2012, she worked as Research Assistant to Jean Pisani-Ferry, then-director of Bruegel. During 2009 and 2010, while a student, she collaborated to research projects of Bocconi University and the Italian ENI Enrico Mattei Foundation (FEEM). During this period she was involved in the MICRODYN project, working on a cross-country and cross-sectors analysis of productivity developments with firm level data, and on the POLINARES project (“Policy for Natural Resources”).

    Born in 1986, she holds a MSc in Economics and Social Sciences at Bocconi University in Milan and graduated in 2011 with a thesis on Current Account Imbalances within the Euro Area. She obtained a BA in Economics and Social Sciences from the same university in 2008, with a thesis on Ukraine and Moldova in the European Neighbourhood Policy.

  • Mario Mariniello

     

    Mario Mariniello was Senior Fellow at Bruegel. He led Bruegel’s Future of Work and Inclusive Growth project, which closely analyses the impact of artificial intelligence (AI) on the nature, quantity and quality of work, welfare systems and inclusive growth at large. In particular, the role of technology in reshaping society when subject to extreme stress (i.e. during a pandemic).

    Before joining Bruegel, Mario was Digital Adviser at the European Political Strategy Centre (EPSC), a European Commission in-house think-tank that operated under the authority of President Jean-Claude Juncker. The EPSC provided the President and the College of Commissioners with strategic, evidence-based analysis and forward-looking policy advice. In his capacity of Digital Adviser, Mario led the EPSC’s work on Digital Single Market issues.

    Mario has also previously been a Bruegel Fellow focusing on “Competition Policy and Regulation”. From 2007 to 2012, Mario was a member of the Chief Economist Team at DG-Competition, European Commission. During that time, he developed the economic analysis of a number of topical antitrust and merger cases in the technological and transport sectors.

    Mario holds a Ph.D. in Industrial Organization from the European University Institute of Fiesole (Florence) and a M.Sc. in Economics from CORIPE (Turin). He currently teaches a course in Digital Economy at the College of Europe and has previously taught a course in European Economic Integration for Master students at the Université Libre de Bruxelles (ULB).

    Declaration of interests 2021

    Declaration of interest 2020

    Declaration of interest 2015

  • Suparna Karmakar

    Suparna Karmakar is an Indian citizen and a Marie Curie fellow at Bruegel from 2 May 2013 to 1 August 2014.

    Her research interests include the multilateral trade negotiations versus regionalism, regulatory barriers and technical standards impeding multilateral and regional trade in goods and services, and market access (including trade facilitation) policy and negotiation issues arising therefrom. At Bruegel she will work on the future of trade multilateralism and the changing role of WTO as the premier multilateral trade negotiating forum.

    Suparna holds a Ph.D. in Economics from Jawaharlal Nehru University of New Delhi. In India Suparna has worked in renowned trade research institutes like the Indian Council for Research on International Economic Relations (ICRIER) and the Centre for WTO Studies (CWS), IIFT, while her international engagements have been as visiting fellow with the Institute of South Asian Studies (ISAS), National University of Singapore (2009) and the ADB Institute, Tokyo (2010). Suparna has also worked as a Consultant on various Government of India-commissioned projects on preferential and multilateral service trade liberalisation, non-tariff barriers and other regulatory restrictions for market access in manufactured goods and services.

Related content

Report

How it can be done

Rüdiger Bachmann, David Baqaee, Christian Bayer, Moritz Kuhn, Andreas Löschel, Ben McWilliams, Benjamin Moll, Andreas Peichl, Karen Pittel, Moritz Schularick and Georg Zachmann