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Begin New Search Topic Government Political Geography Europe Content Type Policy Brief Publishing Institution Hellenic Foundation for European and Foreign Policy (ELIAMEP) Publication Year within 10 Years Publication Year within 5 Years

1. It’s Time for a New Deal

Author:
Constantine Michalopoulos
Publication Date:
01-2020
Content Type:
Policy Brief
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
The prospects of the Greek economy are mostly good with growth continuing for the fourth straight year. But there is a sense of disappointment, as the recovery has not been very strong and pre-crisis income levels will not be regained for another decade. There are two main reasons for the sluggish recovery: The European creditors have imposed on Greece the requirement to run a primary budget surplus of 3.5% of GDP for five years to ensure that they get repaid—a requirement that constricts growth of the Greek private sector—through heavy taxation of consumers and business. And domestic investment is sluggish, although there are plenty of unutilized resources, such as those provided by the European Structural Funds. There is a need for a new deal with the European Institutions: the Europeans should be more relaxed about getting repaid because of Greece’s much improved access to the European capital markets and be willing to accept a Greek government commitment to a significantly lower primary budget surplus for the next several years. In exchange the Greek government should commit to a commensurate increase in domestic investment through reforms of the banking sector as well as greater public sector investment spending.
Topic:
Government, Financial Crisis, Economy, Economic Growth, and Public Spending
Political Geography:
Europe and Greece

2. The European Banking Union

Author:
Pery Bazoti
Publication Date:
08-2019
Content Type:
Policy Brief
Institution:
Hellenic Foundation for European and Foreign Policy (ELIAMEP)
Abstract:
The decade of the economic crisis has highlighted in the most apparent way the flaws and weaknesses in the original architecture of the Economic and Monetary Union as well as the need for decisive reforms. In this effort, the European Banking Union constitutes one of the most ambitious projects of the European Union with the intention of establishing a single system of banking supervision and resolution based on a common regulatory framework. The three pillars of the banking union, analysed in the present policy brief- the Single Supervisory Mechanism, the Single Resolution Mechanism and the European Deposit Insurance Scheme– not only safeguard the banks against future financial crises but also ensure that their potential resolution will not be at the expense of the European taxpayers. Yet, there are also significant challenges that come with the establishment of the banking union; the lack of agreement on a system of risk sharing among the member states has, so far, hindered the creation of the third pillar, the European Deposit Insurance Scheme. Moreover, the new dual role of the ECB, in monetary policy and in banking supervision, and the tendency of banks to buy domestic government debt, raise questions about the efficacy of the European Banking Union under its current design.
Topic:
Government, European Union, Banks, and Economic Policy
Political Geography:
Europe