Marco Buti, Marcello Messori, 11 April 2022

The EU’s domestic and international agendas are usually discussed in various forums. Given the fallout from the Covid crisis and the dramatic consequences of the Russian invasion of Ukraine, this column argues that these agendas should eventually merge. A central fiscal capacity is a key element for reconciling the EU’s domestic and international goals. Domestically, it would help achieve a balanced policy mix and ensure an adequate supply of European public goods, and globally it would give credibility to the geo-economic role of the EU. 

Marco Buti, George Papaconstantinou, 31 January 2022

In an environment of increased interconnectedness and heightened vulnerability, there seems to be an objective need for more European public goods. This column argues that there exists a mismatch between the need and popular demand for such public goods, especially after the pandemic, and a continued reluctance to increase their supply and finance them. In this context, it offers a simple analytical framework for analysing and potentially increasing the supply of European public goods by operating on changing political incentives and institutional dynamics.

Miguel Poiares Maduro, Philippe Martin, Jean-Claude Piris, Jean Pisani-Ferry, Lucrezia Reichlin, Armin Steinbach, Beatrice Weder di Mauro, 16 December 2021

The stability and adequacy of the European monetary and fiscal frameworks are increasingly challenged by enduring changes in the economic environment. This column summarises the findings of a group of economists and lawyers specialised in EU matters who undertook a comprehensive assessment of the economic requirements and legal conditions of a well-functioning macroeconomic policy system for the EU and the euro area. They propose reforms of economic framework in line with economic necessities along three dimensions (coordination of fiscal and monetary policies, fiscal rules, and fiscal capacity at EU level) and assess their legal feasibility. They conclude that meaningful reforms that would bring legal clarity and improve economic performance are feasible within the confines of existing primary law.

Maarten Verwey, Mirko Licchetta, Alexandru Zeana, 08 July 2021

COVID-19 caused a “recession like no other”, which triggered an unprecedented economic policy response in the EU. As the European Commission’s Summer 2021 Economic Forecast points to a quick return to the pre-pandemic output levels, attention shifts to the post-pandemic years. Will the recovery be short-lived, or will the COVID-19 crisis prove to be a transformative event for the EU? Much will depend on the course of economic policy in the years ahead. NextGenerationEU, with its centrepiece the Recovery and Resilience Facility, provides a unique possibility to turn the challenges of the crisis into opportunities. The first set of National Recovery and Resilience Plans give reason for optimism, but much will depend on their implementation by the member states.

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