Past Event

An evaluation of IMF surveillance of the euro area

This event was the presentation and discussion of the Bruegel Blueprint, An evaluation of IMF surveillance of the euro area. The report, written by Bruegel scholars Jean Pisani Ferry, André Sapir and Guntram Wolff analyses the IMF’s surveillance of the euro area in the run-up to, and the early phases of, the euro sovereign debt […]

Date: Nov 8 - Topic:

This event was the presentation and discussion of the Bruegel Blueprint, An evaluation of IMF surveillance of the euro area. The report, written by Bruegel scholars Jean Pisani Ferry, André Sapir and Guntram Wolff analyses the IMF’s surveillance of the euro area in the run-up to, and the early phases of, the euro sovereign debt crisis.

The euro-area crisis has exposed deep deficiencies in the governance of European Economic and Monetary Union. However, crisis prevention in, and surveillance of, the euro area are not only the responsibility of European authorities. As members of the International Monetary Fund, all euro-area countries are also subject to regular bilateral IMF surveillance. The currency union as a whole is also subject to regular IMF surveillance.

The report to be presented at this event analyses the IMF’s surveillance of the euro area. The authors find that it suffered from severe shortcomings in the run-up to the financial crisis, but after the start of the crisis in 2008, IMF surveillance of the euro area greatly improved, with the IMF correctly proposing measures to counter depression risks and warning about banking sector problems. By the time the sovereign debt crisis hit the currency union in early 2010, the IMF was ready to play an influential role. The slow European response meant this was indispensable.

The authors’ presentation was followed by comments from Marco Buti, Director-General for Economic and Financial Affairs, European Commission and Reza Moghadam, Director of the Strategy, Policy and Review Department, IMF. A roundtable discussion concluded the event.

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