COVID-19 will hit financial institutions with a substantial time lag, but the coming storm will be fierce. The EU banking sector is entering the troubled waters of the Corona crisis with four major vulnerabilities: (1) Market and (2) funding liquidity risks have been...
Die EU-Mitgliedstaaten zögern weiter, eine wirklich europäische Antwort auf die Krise zu geben. Damit verspielen sie die derzeit breite öffentliche Zustimmung für europäischer Solidarität.
Die EU-Mitgliedsstaaten müssen die Last der wirtschaftlichen Lasten der COVID-19-Pandemie teilen. Das Pandemie-Solidaritätsinstrument ermöglicht eine solche Lastenteilung: Die EU würde 440 Milliarden Euro auf dem Markt aufnehmen und sie als Zuschüsse für spezifische Ausgaben...
While the ongoing pandemic affects all European economies, we show that it is likely to cause much more economic damage in some member states than in others. Early fiscal crisis responses by EU governments do not reflect these differences. If anything, countries which are...
EU member states must share the burden of the fiscal costs of the COVID-19 pandemic. The Pandemic Solidarity Instrument delivers such burden sharing: The EU would borrow 440 billion euros in the market and would give it as grants to member states for specific spending in...
The ECB has announced a 750-billion-euro purchase programme to fight the economic impact of the COVID-19 pandemic. But like all ECB Programmes in recent years, the new Pandemic Emergency Purchase Programme (PEPP) will likely be challenged in court. This policy brief...
The Banking Union is one of the most important and ambitious projects launched by the European Union in the last ten years. With supervisory and resolution mechanisms for Eurozone banks now up and running, the current narrative is that most of the work to create the Banking...
Does the Eurozone need a “treasury”? The answer is no: The Eurozone needs a common fiscal policy to complement the ECB’s monetary policy. But it does not need a new institution to take fiscal policy decisions or to execute such decisions. The EU institutional framework is...
European companies invest too little. Instead, firms increasingly retain profits and build up large savings which contributes to low growth, rising inequality and financial instability. Boosting private investment, therefore, has become main priority for the new Commission....
Social media platforms have contributed to an unprecedented increase in the spread of disinformation. Concerns about these new and dynamic ways to spread falsehoods have brought politicians and regulators onto the stage. In this paper Paul-Jasper Dittrich proposes a European...
