A MACRO-FINANCIAL MODEL of the EUROZONE ARCHITECTURE EMBEDDED in the GLOBAL OFFSHORE US-DOLLAR SYSTEM Steffen Murau
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The European Payments Union and the Origins of Triffin's Regional Approach Towards International Monetary Integration
A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Maes, Ivo; Pasotti, Ilaria Working Paper The European Payments Union and the origins of Triffin's regional approach towards international monetary integration NBB Working Paper, No. 301 Provided in Cooperation with: National Bank of Belgium, Brussels Suggested Citation: Maes, Ivo; Pasotti, Ilaria (2016) : The European Payments Union and the origins of Triffin's regional approach towards international monetary integration, NBB Working Paper, No. 301, National Bank of Belgium, Brussels This Version is available at: http://hdl.handle.net/10419/173757 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen -
The Missing Pieces of the Euro Architecture
Policy Contribution Issue n˚28 | October 2017 The missing pieces of the euro architecture Grégory Claeys Executive summary This policy contribution describes the institutional flaws of the single currency Grégory Claeys (gregory. revealed by the euro crisis and the institutional reforms that were put in place during and [email protected]) is a in the aftermath the crisis, and evaluates the remaining fragilities of the architecture of the Research Fellow at Bruegel European monetary union. In order to achieve a more resilient monetary union in Europe, we propose: 1) to A version of this paper was form a ‘financing union’ through the completion of the banking union and the promotion of prepared for the conference an ambitious capital markets union to provide private risk sharing between the countries of ‘20 years after the Asian the monetary union; and 2) to improve the defective macroeconomic policy framework to Financial Crisis: Lessons, avoid a repeat of the mistakes of recent years. Challenges, Way Forward’, Tokyo, 13-14 April 2017, The latter involves: reforming the European Stability Mechanism / Outright Monetary organised jointly by the Asian Transactions framework to clarify its functions and improve its governance system, reforming Development Bank and the the European fiscal rules to make them more effective to achieve the two desirable objectives Asian Development Bank of sustainability and stabilisation, and creating a small-scale euro-area stabilisation tool to Institute, and was published provide public risk sharing in case of significant shocks that members of the monetary union as ADBI Working Paper No. cannot deal with alone and to help manage the euro-area aggregate fiscal stance. -
COVID-19 Summary of EU Economic Response
COVID-19 Summary of EU Economic Response Key points • The European Commission and the EIB have pledged dozens of billions of euros to help Member States and EU financial institutions provide the necessary liquidity to EU businesses • Several of these programmes will be specifically dedicated to SMEs and mid-caps, including, through the EIF, those supported by venture capital funds • The ECB has promised to do “whatever it takes” to counter the risk of monetary policy transmission • Temporary legal amendments have been introduced to ensure Member States are able to take the appropriate and necessary actions to sustain viable businesses Summary of EU economic response While most of the attention over the past few days has been on the policy measures taken at national level to provide support to companies affected by the Covid-19 crisis, several actions were also taken at EU level to help, directly or indirectly, businesses to bear the burden posed by the pandemic on their activities. 1. Commitments through the European budget (MFF) The European Commission, with the support of the European Investment Fund (EIF), has launched different programmes within the remit of the existing EU budget. Some of these will be directly available to private equity-backed portfolio companies, others will help Member States to take additional measures to support their economy. a) Coronavirus Response Investment Initiative (CRII) From 13 March, the EU has quickly mobilised cash reserves from the EU funds to provide immediate liquidity to Member States' budgets, increasing directly the amount of investment in 2020 to fight the crisis. The scope of the EU solidarity fund was also increased in light of the public health crisis. -
The Bank of the European Union (Sabine Tissot) the Authors Do Not Accept Responsibility for the 1958-2008 • 1958-2008 • 1958-2008 Translations
The book is published and printed in Luxembourg by 1958-2008 • 1958-2008 • 1958-2008 1958-2008 • 1958-2008 • 1958-2008 15, rue du Commerce – L-1351 Luxembourg 3 (+352) 48 00 22 -1 5 (+352) 49 59 63 1958-2008 • 1958-2008 • 1958-2008 U [email protected] – www.ic.lu The history of the European Investment Bank cannot would thus mobilise capital to promote the cohesion be dissociated from that of the European project of the European area and modernise the economy. 1958-2008 • 1958-2008 • 1958-2008 The EIB yesterday and today itself or from the stages in its implementation. First These initial objectives have not been abandoned. (cover photographs) broached during the inter-war period, the idea of an 1958-2008 • 1958-2008 • 1958-2008 The Bank’s history symbolised by its institution for the financing of major infrastructure in However, today’s EIB is very different from that which 1958-2008 • 1958-2008 • 1958-2008 successive headquarters’ buildings: Europe resurfaced in 1949 at the time of reconstruction started operating in 1958. The Europe of Six has Mont des Arts in Brussels, and the Marshall Plan, when Maurice Petsche proposed become that of Twenty-Seven; the individual national 1958-2008 • 1958-2008 • 1958-2008 Place de Metz and Boulevard Konrad Adenauer the creation of a European investment bank to the economies have given way to the ‘single market’; there (West and East Buildings) in Luxembourg. Organisation for European Economic Cooperation. has been continuous technological progress, whether 1958-2008 • 1958-2008 • 1958-2008 in industry or financial services; and the concerns of The creation of the Bank was finalised during the European citizens have changed. -
The Banking Union, Under Way and Here to Stay
www.pwc.es www.ie.edu The Banking Union, under way and here to stay A report by the PwC and IE Business School Centre for the Financial Sector. This report has been coordinated by Luis Maldonado, managing director of the PwC and IE Business School Centre for the Financial Sector February 2014 Contents Introduction 4 Executive summary 10 The Single Supervisory Mechanism, the key to the entire process 14 The entrance exam. Crossing the gorge. 22 The SSM from the inside 24 The Single Resolution Mechanism, a crucial component 26 Operations. This is how the SRM will work 32 A Safety Net with Loopholes 34 Emergency liquidity assistance, the taboo last resort 38 The ESM, a cannon of limited use 40 A Single Rulebook to prevent fragmentation 42 Learning from mistakes 47 Conclusions and recommendations 48 References 51 3 Introduction The European Union’s progress towards Since then, spectacular progress has integration has always been marked by been achieved in a little more than a firm steps and inconsistent political year and a half. Today there is impulses, guided to a large extent by considerable consensus on the developments in the international components that should constitute the economic environment. The banking union: a Single Supervisory implementation of the Economic and Mechanism (SSM) for the entire euro Monetary Union (EMU) and the creation area; a Single Resolution Mechanism of the euro constitute a key – and (SRM), with a single European authority fortunately irreversible – advancement, able to take over a bank’s management, as the European Central Bank reiterated restructure it and even wind up its at the height of the sovereign debt crisis operations if necessary, and a Single in 2012. -
Coronavirus and the Cost of Non-Europe
Coronavirus and the cost of non-Europe An analysis of the economic benefits of common European action IN-DEPTH ANALYSIS EPRS | European Parliamentary Research Service European Added Value Unit PE 642.837 – May 2020 EN European integration has been key to driving economic growth for half a century, generating significant gains in gross domestic product (GDP) for EU Member States both collectively and individually. This EPRS paper focuses on the economic benefits of common action, and what is at risk if the current coronavirus crisis and its aftermath were to stall or reverse the process of European integration. It attempts to quantify the losses entailed if the economic downturn caused by the pandemic were to result in the gradual dismantling of the EU project and a parallel failure to take advantage of the unexploited potential of collective public goods that could yet be created. In this respect, the study makes use of two complementary concepts: European added value, which attempts to identify the benefit of existing collective action at European level, and the cost of non-Europe, which assesses the benefits foregone by not taking further action in the future. Even cautious estimates suggest that dismantling the EU single market would cost the European economy between 3.0 and 8.7 per cent of its collective GDP, or between €480 billion and €1 380 billion per year. In parallel, the potential cost of non-Europe in 50 policy fields was identified by EPRS in 2019 as around €2.2 trillion or 14 per cent of EU GDP (by the end of a ten-year running-in period). -
The Economic and Monetary Union: Past, Present and Future
CASE Reports The Economic and Monetary Union: Past, Present and Future Marek Dabrowski No. 497 (2019) This article is based on a policy contribution prepared for the Committee on Economic and Monetary Affairs of the European Parliament (ECON) as an input for the Monetary Dialogue of 28 January 2019 between ECON and the President of the ECB (http://www.europarl.europa.eu/committees/en/econ/monetary-dialogue.html). Copyright remains with the European Parliament at all times. “CASE Reports” is a continuation of “CASE Network Studies & Analyses” series. Keywords: European Union, Economic and Monetary Union, common currency area, monetary policy, fiscal policy JEL codes: E58, E62, E63, F33, F45, H62, H63 © CASE – Center for Social and Economic Research, Warsaw, 2019 DTP: Tandem Studio EAN: 9788371786808 Publisher: CASE – Center for Social and Economic Research al. Jana Pawła II 61, office 212, 01-031 Warsaw, Poland tel.: (+48) 22 206 29 00, fax: (+48) 22 206 29 01 e-mail: [email protected] http://www.case-researc.eu Contents List of Figures 4 List of Tables 5 List of Abbreviations 6 Author 7 Abstract 8 Executive Summary 9 1. Introduction 11 2. History of the common currency project and its implementation 13 2.1. Historical and theoretic background 13 2.2. From the Werner Report to the Maastricht Treaty (1969–1992) 15 2.3. Preparation phase (1993–1998) 16 2.4. The first decade (1999–2008) 17 2.5. The second decade (2009–2018) 19 3. EA performance in its first twenty years 22 3.1. Inflation, exchange rate and the share in global official reserves 22 3.2. -
Towards a New Pact for Europe
TOWARDS A NEW PACT FOR EUROPE The New Pact for Europe project is supported by a large transnational consortium including the King Baudouin Foundation, Bertelsmann Stiftung, Allianz Kulturstiftung, BMW Foundation, Calouste Gulbenkian Foundation, European Cultural Foundation, European Policy Centre, “la Caixa” Foundation, Network of European Foundations, Open Estonia Foundation, Open Society Initiative for Europe, Stiftung Mercator and Svenska Kultur Fonden Promoting the European Debate [email protected] www.newpactforeurope.eu TOWARDS A NEW PACT FOR EUROPE SECOND REPORT October 2014 NEW PACT FOR EUROPE: SECOND REPORT TOWARDS A NEW PACT FOR EUROPE A publication of the King Baudouin Foundation, the Bertelsmann Stiftung and the European Policy Centre (EPC) RAPPORTEUR Janis A. Emmanouilidis, European Policy Centre (EPC) EDITING Jacki Davis, Meade Davis Communication COORDINATION Gerrit Rauws, Director KING BAUDOUIN FOUNDATION Stefan Schäfers, European Programme Advisor Anneke Denecker, Assistant COORDINATION Joachim Fritz-Vannahme, Director BERTELSMANN STIFTUNG Andrej Stuchlik, Project Manager GRAPHIC DESIGN Margarida Oliveira, Forma Design ILLUSTRATION Inês do Carmo This publication can be downloaded free of charge from www.kbs-frb.be, www.epc.eu and www.newpactforeurope.eu This publication is available free of charge: order online from www.kbs-frb.be, by e-mail sent to [email protected] or by calling or faxing the King Baudouin Foundation’s Contact Centre T +32 70 233 728, F +32 70 233 727 Legal deposit: D/2893/2014/35 ORDER NUMBER: -
Two Proposals to Resurrect the Banking Union by Luis Garicano
Two proposals to resurrect the Banking Union: the Safe Portfolio Approach and SRB+1 Paper prepared for ECB Conference on “Fiscal Policy and EMU Governance”, Frankfurt, 19 December 2019 Luis Garicano2 Member of the European Parliament Professor of Economics and Strategy, IE Business School (on leave) Abstract Nearly eight years after its inception, the European Banking Union is crumbling. None of its two stated objectives—breaking future contagion between banks and sovereigns, and creating a true single market for banks—have been achieved. In fact, the banking market is more fragmented now than it was at the inception of the Banking Union, as home and host regulators for cross-border European banks fight to ensure sufficient capital and liquidity in each market that a bank might operate in. The reason for this state of affairs is that, of the planned “three pillar” structure of the Banking Union, only its “first pillar” (the Single Supervisory Mechanism), is working smoothly. The “second pillar”, the Single Resolution Mechanism, is being circumvented, along with the bank resolution framework, while Member States continue to spend taxpayer money to prevent investors from incurring losses. The “third pillar”, a European deposit insurance, has been paralyzed for four years. This paper aims to provide a politically and economically viable path to revive our Banking Union. This path rests on two legs. First, creating a model “Safe Portfolio” and incentivizing banks to move toward it. Such “Safe Portfolio” would be the basis for a market-provided European Safe Asset without joint liability. Second, empowering the Single Resolution Board by reforming the resolution framework and setting up a European deposit insurance. -
The European Venture Capital Landscape: an EIF Perspective Volume VI: the Impact of VC on the Exit and Innovation Outcomes of EIF-Backed Start-Ups
EIF Research & Market Analysis Working Paper 2021/70 The European venture capital landscape: an EIF perspective Volume VI: The impact of VC on the exit and innovation outcomes of EIF-backed start-ups Elitsa Pavlova Simone Signore Elitsa Pavlova is Research Assistant in EIF’s Research & Market Analysis division. Contact: [email protected] Tel.: +352 2485 81 945 Simone Signore is Senior Research Officer in EIF’s Research & Market Analysis division. Contact: [email protected] Tel.: +352 2485 81 636 Editor Helmut Kraemer-Eis, Head of EIF’s Research & Market Analysis, Chief Economist Contact: European Investment Fund 37B, avenue J.F. Kennedy, L-2968 Luxembourg Tel.: +352 248581 394 http://www.eif.org/news_centre/research/index.htm Scan above to obtain a PDF Luxembourg, February 2021 version of this working paper Disclaimer: This Working Paper should not be referred to as representing the views of the European Investment Fund (EIF) or of the European Investment Bank Group (EIB Group). Any views expressed herein, including interpretation(s) of regulations, reflect the current views of the author(s), which do not necessarily correspond to the views of the EIF or of the EIB Group. Views expressed herein may differ from views set out in other documents, including similar research papers, published by the EIF or by the EIB Group. Contents of this Working Paper, including views expressed, are current at the date of publication set out above, and may change without notice. No representation or warranty, express or implied, is or will be made and no liability or responsibility is or will be accepted by the EIF or by the EIB Group in respect of the accuracy or completeness of the information contained herein and any such liability is expressly disclaimed. -
Standard & Poors
European Investment Fund Primary Credit Analyst: Alexander Ekbom, Stockholm + 46 84 40 5911; [email protected] Secondary Contact: Regina Argenio, Milan + 39 0272111208; [email protected] Table Of Contents Ratings Score Snapshot Outlook Rationale Environmental, Social, And Governance (ESG) Enterprise Risk Profile: Strong Record of Fulfilling Its Mandate Financial Risk Profile: Robust Capitalization And Liquidity Profile Extraordinary Shareholder Support Group Support Ratings Score Snapshot Related Criteria WWW.STANDARDANDPOORS.COM/RATINGSDIRECT APRIL 21, 2021 1 European Investment Fund Ratings Score Snapshot Issuer Credit Rating Foreign Currency AAA/Stable/A-1+ Outlook The stable outlook on the European Investment Fund (EIF) mirrors that on the European Investment Bank (EIB) group, which we assume will remain the main policy bank for the EU. This is because we expect the EIB to support the EIF under any foreseeable circumstances. The outlook on the EIB reflects our expectation that the institution's preferred creditor treatment (PCT), alongside its comprehensive use of risk mitigation frameworks, will ensure its overall asset quality remains excellent amid the currently elevated uncertainty surrounding borrowers' repayment behaviors stemming from the COVID-19 pandemic. Our outlook assumes a very strong financial profile with the EIB's risk-adjusted capital (RAC) ratio comfortably above 15%, a healthy liquidity position, and uninterrupted access to low-cost capital market financing. Downside scenario We could lower the ratings on the EIF if we lowered our ratings on the EIB in the next 24 months. Although very unlikely, our ratings on the EIB could come under pressure if its mandate fulfilment was curtailed by constrained financial resources, with asset quality significantly deteriorating such that its PCT was in doubt. -
Occasional Paper Series
Occasional Paper Series Ettore Dorrucci, The four unions “PIE” on Demosthenes Ioannou, Francesco Paolo the Monetary Union “CHERRY”: Mongelli, and a new index of European Institutional Alessio Terzi Integration 30° No 160 / February 2015 6E E 3,5E 6E E E 80° 100% 53% E 6E 7,5E Note: This Occasional Paper should not be reported as representing the views of the European Central Bank (ECB). The views expressed are those of the authors and do not necessarily reflect those of the ECB. Acknowledgements The authors would like to thank Ad van Riet, Marta Wieczorek, Benoît Cœuré, David Clarke, Iñigo Arruga Oleaga, Philippe Moutot, Carmelo Salleo, Gilles Noblet, and Michaela Posch for helpful comments. We also received useful feedback at the 2013 Villa Mondragone Seminar in Rome, the CES Conference in Washington D.C. in March 2014, and the 45th Meeting of the ECB Committee on Financial Integration in September 2014. We would like to thank Rita Sapage and Sabine Prennig for helpful assistance. The views expressed in this paper do not necessarily reflect those of the European Central Bank, and we remain responsible for any errors or omissions. This paper is in memory of Tommaso Padoa-Schioppa, a scholar and architect of European integration. © European Central Bank, 2015 Postal Address 60640 Frankfurt am Main, Germany Telephone +49 69 1344 0 Internet www.ecb.europa.eu All rights reserved. Reproduction for educational and non-commercial purposes is permitted provided that the source is acknowledged ISSN 1725-6534 (online) EU catalogue No QB-AQ-15-003-EN-N (online) Any reproduction, publication and reprint in the form of a different publication, whether printed or produced electronically, in whole or in part, is permitted only with the explicit written authorisation of the ECB or the authors.