COVID-19 has caused a resurgence of the role of the state. State ownership can help reduce effects from shocks to the economy but state-owned firms often suffer from weak governance and lack of innovation. What role should state owned firms and banks play and how can their management be improved?
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The economic fallout of the COVID-19 crisis has increased state interventions in the economy. This event will discuss the role of the state across Europe, comparing the experiences of the CEE region the Neighborhood with countries in the rest of Europe.
In the three decades following the end of communism in Eastern Europe, conventional economic thinking and policy making were dominated by a focus on a small role of the state, privatisation and deregulation. However, the global financial crisis in 2008, as well as lacklustre growth and rising inequality afterwards, have led to increasing support for state intervention in the economy. This trend has been accelerated by the ongoing Covid-19 crisis, which necessitated massive interventions to support the economy and prevent economic and social meltdowns. The crisis also highlighted great expectations of citizens when it comes to the ability of the state to reduce health and economic risks faced by individuals.
This event will feature a presentation of the 2020-21 EBRD Transition report which examines the size and the role of the state across the EBRD regions, the bright and sometimes dark side of state-owned enterprises and state banks in the modern economy, as well as the role of the state in supporting the green economy transition.
Presentation of the EBRD transition report
Beata Javorcik, Chief Economist, European Bank for Reconstruction and Development (EBRD)
Chief Economist, European Bank for Reconstruction and Development (EBRD)
Deputy Director General, European Commission, DG NEAR
How can we ensure fair competition between European firms and Chinese state-backed players?
Political change in Belarus also requires deep economic reforms - what next for the country?
How is the Vienna Initiative evolving to respond to the crisis caused by COVID-19?
The distortive effects that foreign state-owned or state-supported companies can have on European markets and on the European Union’s economic autonomy are starting to worry policymakers
This event will feature the presentation of the 2019 EBRD Transition report, which focuses on governance in the EBRD regions.
The debate on euro adoption by central European EU countries has intensified in the last years. In this Policy Contribution the author does not review all the complex aspects of euro-area enlargement, but analyse a particularly important issue: the build-up of macroeconomic vulnerabilities and the subsequent adjustments.
What are the priorities of for Central and Eastern Europe in view of the challenges facing Europe in 2019?
When considering China’s renewed state capitalism, we should be mindful of the damage done by the 2008 financial crisis to the world's perception of Western capitalism.
In its bid to join the single currency Bulgaria has made commitments on financial supervision but also wider structural reform which set a precedent for future applicants for participation in the exchange rate mechanism ERMII. Most conditions, though not all, are justified by the additional demands of the banking union. But the envisaged timeline seems ambitious, and verification will not be straightforward.
Improvement in institutional quality, particularly concerning the rule of law, is the most essential and urgent structural reform the EU can make. Without it, the obtrusive lack of trust in the EU – which has thus far hampered expansionary and reformist efforts – will persist.