The Commission is considering legislation which would introduce a “New Competition Tool” (NCT). Its general goal would be to undergird the protection of undistorted competition in the internal market with a new pillar. The NCT shall allow the Commission to tackle competition problems that are no...
The first 20 years of the euro were very different from what had been anticipated. Deflation, rather than inflation became a problem. Financial markets, which had been neglected, became a major source of instability. However, the euro area proved resilient and support for the euro is at historic...
This paper is linked to two debates on fiscal policies: first, the implications of low interest- growth differentials for debt sustainability and, second, the reform of the EU fiscal governance framework. In both debates the choice of government debt anchor and the speed of adjustment take centr...
The ‘deal’ concerning a new settlement for the United Kingdom within the European Union covers questions relating to the Economic Governance of the EU and of the Euro area. Whilst the ‘deal’ was negotiated with a view to the United Kingdom, the provision in the respective documents of the ‘deal’...
Since 2008, and as the result of central banks reaching the zero-lower bound, fiscal policy has come back as a potential, possibly primary, tool to stabilize business cycles. We present evidence that European countries have historically relied on automatic stabilisers for counter-cyclical polici...
In the context of the review of the EU economic governance framework, this study recommends a multi-year ahead expenditure rule anchored in an appropriate public debt target, augmented with an asymmetric golden rule that provides extra fiscal space only in times of a recession. An improved gover...
The feasibility and credibility of bank resolutions depends, among others, on whether the impediments to resolvability are addressed or removed. Based on the limited public information this paper assesses the current state of the identification and removal of impediments to the resolvability of ...
It has been sixteen years since the European Central Bank has undertaken a review of its monetary policy. In the intervening time, the world – and the economic challenges facing the ECB – have changed immensely. This paper argues that a review is overdue but that it should not be limited to poli...