Before the start of the working day, a new edition of “EU to go spezial” focused on EMU reforms before the upcoming European summit. Lucas Guttenberg (Jacques Delors Institut - Berlin) and Katharina Gnath (Bertelsmann Stiftung) presented the current state of the debate on Euro area reforms.
In their presentation, the researchers addressed the main areas under discussion, including Banking Union, the European Stability Mechanism (ESM), and the future of fiscal policy. While summit debates on banking union will most likely focus on risk reduction and the starting date of the so-called “backstop” for the Single Resolution Fund, the ESM will probably see its role expanded to also include preventive monitoring of economic policies and developments. The presenters also outlined the different proposals on a fiscal capacity for the Eurozone that aim to increase investment and strengthen stabilization over the economic cycle. Katharina Gnath and Lucas Guttenberg finished their presentation with three scenarios highlighting possible outcomes of the upcoming Council meeting at the end of June.