Author: Nicolas Véron / Content Type: Policy Brief / Publishing Institution: Peterson Institute for International Economics / Political Geography: Europe / Publication Year: within 25 Years / Topic: Economics

Author:: Nicolas Véron
Publication Date:: 12-2012
Content Type:: Policy Brief
Institution:: Peterson Institute for International Economics
Abstract:: On June 29, 2012, the heads of state and government of the 17 euro area countries issued a landmark statement that started with the sentences “We affirm that it is imperative to break the vicious circle between banks and sovereigns. The Commission will present Proposals on the basis of Article 127(6) for a single supervisory mechanism shortly. We ask the Council to consider these Proposals as a matter of urgency by the end of 2012. When an effective single supervisory mechanism is established, involving the ECB [European Central Bank] for banks in the euro area the ESM [European Stability Mechanism] could, following a regular decision, have the possibility to recapitalize banks directly” (Euro Area Summit Statement 2012). This statement was received by the investor community and the European public as marking the initial step towards a European banking union, i.e., a shift of the key instruments of banking policy from the national to the European level to enable the formation and maintenance of an integrated European banking system.
Topic:: Economics, Globalization, International Trade and Finance, and Monetary Policy
Political Geography:: Europe

Author:: Nicolas Véron
Publication Date:: 12-2010
Content Type:: Policy Brief
Institution:: Peterson Institute for International Economics
Abstract:: In the context of a transatlantic comparison, the first thing to be mentioned is the difference between the time sequence of financial reforms in the European Union and its equivalent in the United States. The financial crisis started simultaneously on both sides of the Atlantic, with the initial disruption of some financial market segments in August 2007 and the major panic episode of September through October 2008. But they are not at the same stage of policy reaction and especially regulatory reform now. At least four reasons can be identified for this difference.
Topic:: Economics, Global Recession, Monetary Policy, and Financial Crisis
Political Geography:: United States and Europe

Author:: Nicolas Véron and Stéphane Rottier
Publication Date:: 09-2010
Content Type:: Policy Brief
Institution:: Peterson Institute for International Economics
Abstract:: “All politics is local,” as the saying goes, but all economics is global, and regulation is one area where these two realities meet and conflict. This has been particularly true for financial regulation in the wake of the unprecedented financial crisis.
Topic:: Economics, Genocide, International Cooperation, International Trade and Finance, and Monetary Policy
Political Geography:: Europe

Author:: Adam S. Posen and Nicolas Véron
Publication Date:: 06-2009
Content Type:: Policy Brief
Institution:: Peterson Institute for International Economics
Abstract:: Since mid-2007, public authorities in the European Union have broadly met the challenge of ensuring a functional degree of liquidity and preventing financial meltdown. The Eurosystem has even been ahead of the curve compared with the Federal Reserve and the Bank of England in discounting early on a wide variety of assets to a range of counterparties. However, despite unprecedented central bank intervention, extensive government guarantees since October 2008, and macroeconomic assistance (with the International Monetary Fund) to the European Union's weakest member states, the underlying state of continental Europe's banking industry remains very fragile.
Topic:: Economics, Markets, and Monetary Policy
Political Geography:: United States, United Kingdom, and Europe

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