EU policies

Marco Buti, Nicolas Carnot, 07 December 2018

The debate continues over the needed ingredients for a stable Economic and Monetary Union. Some authors have argued that the completion of a financial union (banking union and capital markets union) together with sound national fiscal policies eliminate the need for common budgetary instruments. The authors of this column beg to disagree and re-state the case for a central fiscal capacity. In essence, whilst financial union and a euro area fiscal stabilisation are substitutes in normal times, they are complementary in bad times. 

Hugo Rojas-Romagosa, Johannes Bollen, 07 December 2018

Intra-EU migration stocks more than doubled between 1960 and 2015, with the EU's principle of free movement of people seen as one of the main drivers. The column shows that free movement on average increased the stock of intra-EU migrants by 28%, representing around one quarter of total intra-EU migration during this period. The free movement of people has had a substantial impact on migration originating from both old and new member states, with the vast majority of migrants going to the old member states. 

Michel Heijdra, Tjalle Aarden, Jesper Hanson, Toep van Dijk, 30 November 2018

A central fiscal capacity is a recurring topic in discussions on reform of the Economic and Monetary Union, but no consensus on the usefulness and necessity of a such a capacity has been reached. This column, part of the Vox debate on euro area reform, argues that the potential stability benefits of a central fiscal capacity can be achieved through stronger financial market risk sharing and more effective use of fiscal stabilisers, without any additional fiscal risk sharing.

Friedrich Heinemann, Stefani Weiss, 26 October 2018

The EU’s Common Agricultural Policy for the decade ahead is beginning to take shape. This column argues that, as it stands, the policy fails to ensure public goods provision for the EU at large, and the lack of clarity on its payment terms are a concession to pressure from farmers’ lobbies. Without significant changes in the final stages of negotiation, the CAP could become an enormous waste of resources while providing little or no ‘European added value’.

Anne-Laure Delatte, 23 October 2018

The agenda to fix the euro is hampered by conflicting national interests. Creditor countries demand fiscal house cleaning and debtor countries ask for risk sharing. There is currently a political deadlock about how the adjustment burden should be distributed, perpetuating a state of vulnerability that is not in the collective interest of euro area members. This column, part of the Vox debate on euro area reform, argues that overcoming this coordination failure requires reforming the political governance of the EU, rather than just its economic governance.

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