Dirk Schoenmaker, 19 December 2009

Current practice of national crisis resolution is threatening the EU’s single banking market. The financial trilemma suggests that policymakers can only choose two out of the following three objectives: financial stability, financial integration, and national financial policies. This column argues that EU burden-sharing rules among governments can save the single market.

Richard Tol, Thomas Rutherford, Christoph Böhringer, 04 December 2009

The EU is committed to limiting the rise in global average temperature to 2°C above pre-industrial levels and aims to achieve this through a range of policy instruments. This column warns that climate policy need not cost a lot, but imperfect implementation could cause hundreds of billions of euros’ worth of unnecessary welfare losses.

Jaime de Melo, Céline Carrère, Bolormaa Klok, 21 November 2009

Almost all economies are party to preferential trade schemes. But how much are they “giving away” or “receiving” in preferential access? This column presents a compact representation of effective market access and applies it to the proposed ASEAN-EU trade agreement.

Christian Dustmann, Tommaso Frattini, Caroline Halls, 08 August 2009

Are new immigrants a fiscal burden on incumbent residents? This column looks at Eastern European immigrants in the UK and shows that they are net contributors to public finances because they have a higher labour force participation rate, are likely to pay more in indirect taxes like VAT, and make much lower use of benefits and public services.

Marco Buti, István Székely, Filip Keereman, 20 June 2009

This column says that the enlargement of the EU from 15 to 27 members made the EU more competitive and it is therefore better placed to face the current crisis. It says that both old and new member states enjoyed major benefits from eliminating trade barriers, gradually allowing higher cross-border labour mobility, promoting financial integration, strengthening institutions, and significantly reducing political risk.

Bruno van Pottelsberghe de la Potterie, Malwina Mejer, 10 April 2009

The European Patent Office has offered a centralised examination service for the 34 member states of the European Patent Convention since the 1970s. However, once patents are granted by the EPO, there is no uniform system to enforce them. They must be validated and enforced by each member state. This column argues that the resulting uncertainty about the validity and market reach of patents reduces innovation.

Giorgio Barba Navaretti, Giacomo Calzolari, Guido Ferrarini, Alberto Pozzolo, 08 April 2009

The crisis has brought multinational banks and their cross-border activities to the forefront of European regulatory concerns. This column argues that such banks are critical to successful EU financial integration and says that the appropriate response is to establish multinational regulation to match multinational banks. It proposes a European System of Banking Supervision and harmonisation of regulating banking groups.

Lans Bovenberg, Coen Teulings, 04 April 2009

Some analysts have argued that the European is poorly positioned to address the crisis since its economic integration has outpaced its integration of politics and governance. This column says that, in the face of the crisis, Europe must now decide between political integration and economic disintegration. It argues for EU-wide banking reforms, financial regulation, macroeconomic policies, and global coordination.

Viral Acharya, 04 March 2009

The de Larosiere report is an important contribution to the future global financial architecture, especially its proposals for reform of EU regulatory supervision and global coordination. There is a surprisingly broad consensus on what needs to be done to fix the global financial system emerging. One hopes that the G20 summit will be a platform to launch key international reforms.

Daniel Gros, 25 February 2009

The European periphery faces significant economic turmoil. This column argues that Eastern European woes threaten the core of Europe and necessitate a systemic response. It proposes a new, massive European Financial Stability Fund (involving about 5% of EU GDP) run through the European Investment Bank.

Sylvester Eijffinger, 05 February 2009

This column outlines the Netherlands’ economic recovery plans and compares them to those of other EU members. The Dutch and German plans are sound, as they focus on inducing investment rather than assisting consumers and avoid picking winners amongst industries. But their efforts may not be enough, given recession forecasts.

Sylvester Eijffinger, 03 December 2008

In CEPR Policy Insight No 27, Sylvester Eijffinger discusses the crisis management in the EU. The paper describes the development of the crisis with the denial phase, the discovery phase and the disposal phase of the crisis. It also analyzes the nationalization of banks and the three conditions that need to be fulfilled to make a bailout as unattractive as possible.

Sylvester Eijffinger, 04 December 2008

This column introduces the newest Policy Insight on what the EU has been doing and should be doing in terms of managing the global crisis.

Alberto Galasso, Mark Schankerman, 29 November 2008

The EU is considering two major policy initiatives to improve patent enforcement – patent litigation insurance and establishment of a centralised patent court. This column studies the US experience in centralising patent decisions and concludes that a European Patent Court would likely bring clarity to patent rights, making the market for innovation more efficient.

Gylfi Zoega, 27 November 2008

Iceland’s meltdown was caused by the rapid emergence of an oversized banking sector and accompanying domestic credit creation, asset bubbles and excessive indebtedness that all this encouraged. This column draws lessons from this crisis and suggests Iceland should join the EU if it wants to stand a chance at keeping its well-educated young people from emigrating.

Kavaljit Singh, 20 November 2008

French President Nicholas Sarkozy has proposed that European nations create sovereign wealth funds to protect national companies from foreign “predators.” This column says that idea is protectionist and without merit. Emerging economies establish sovereign wealth funds to invest foreign reserves or commodity revenue – not to bail out domestic firms and stifle global competition.

Philip Lane, 06 November 2008

Iceland is undergoing a traumatic financial crisis. This column argues that the main anchor for its recovery strategy should be EU membership and entry into the euro area.

Daniel Gros, Stefano Micossi, 30 October 2008

The euro is plunging and EU banks are coming under renewed pressure. There is a strong demand for ‘European’ bonds as well as a need for massive government capital infusions to prevent the crisis from getting worse in the banking sector and the European periphery. This is why the EU should set up a massive European Financial Stability Fund.

Marco Pagano, 17 October 2008

EU leaders have agreed on a bail-out plan but much is still unknown about its details. How will governments act as equity shareholders? Who will deal with cross-border banks? This column discusses the need for a Euro-area bank supervisory authority, as financial integration has outpaced regulatory integration.

Tomaso Duso, 30 July 2008

How do we know if EU competition authorities are approving the right mergers? This column presents research that tracks how competitors’ stock prices react to merger news to infer when the authorities err. The European Commission is not doing badly, but it has room for improvement.

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