Debora Revoltella, Rolf Strauch, 24 May 2021

Jump-starting investment after Covid-19 is a crucial challenge for the sustainability of the recovery. This column highlights that incentives to re-launch investment remain crucial. Viable and new firms need to have access to additional new financing as we emerge from the crisis. Debt finance cannot be the only option. Incentives for recapitalisation of companies and access to equity or equity-type finance become increasingly important. The legacies of the pandemic in the financial sector need to be worked out quickly. European and government support complementing post-pandemic bank and capital market financing will be critical to a strong and sustained recovery. 

George Papaconstantinou, 23 April 2021

Europe has struggled through two crises in the last decade, but this time its response has been much more decisive and ambitious. George Papaconstantinou tells Tim Phillips why Covid-19 may be the catalyst for deeper EU integration.

You can download CEPR Policy Insight 109: Reshaping economic policy in the EU in the post-Covid world, by Marco Buti and George Papaconstantinou, here

Marco Buti, George Papaconstantinou, 23 April 2021

Most of the discussion on the economic policy response to the pandemic in Europe has centred on its ambition, tools, and institutional characteristics. Less discussion has taken place on the factors shaping EU integration and economic policy priorities after the pandemic. In a new CEPR Policy Insight, the authors argue that four sets of issues will be important in shaping the legacy of the pandemic for European integration: redefining the new boundaries between state and market; revisiting the nature of subsidiarity; reconnecting the EU domestic with the global agenda; and learning to respond to longer term structural shifts.

Marco Buti, Oscar Polli, 11 February 2021

The Recovery and Resilience Facility is at the heart of Next Generation EU, Europe’s plan to tackle the economic fall out of the pandemic crisis. Member states must prepare national plans to receive the EU contributions. These plans include the investment and reform projects as well as their implementation mechanisms. This column uses the veto players’ theory to explain and predict the governance arrangements chosen by EU countries. It shows that the institutional features of countries and the internal cohesion of governments are important determinants of the governance of Recovery and Resilience Programmes.

Roel Beetsma, Lorenzo Codogno, Paul van den Noord, 09 November 2020

Björn Bremer, Theresa Kuhn, Maurits J. Meijers, Francesco Nicoli, 04 November 2020

Concerns about a populist, Eurosceptic backlash have long been an obstacle to the fiscal integration of the EU. This column uses a new survey fielded in five countries – France, Germany, Italy, the Netherlands, and Spain – to measure the validity of those concerns. The results suggest that support for a joint European fiscal instrument is high; that the pandemic recovery plan agreed under ‘Next Generation EU’ is a well-tailored instrument; and that making the recovery fund permanent would provide a path to political sustainability and garner widespread support among European citizens.

Thorsten Beck, 27 July 2020

Maarten Verwey, Sven Langedijk, Robert Kuenzel, 09 June 2020

As Member States start to ease restrictions linked to the COVID-19 pandemic on citizens and businesses, EU leaders and institutions have turned their attention towards the medium-term recovery of their economies. In late May, the Commission presented its proposals for a recovery plan. This column provides a brief overview of the economic rationale for collective action and an assessment of the expected impact of the recovery plan proposed by the Commission.

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