Ideas on Europe

Informed analysis, comment and debate

Tag Archives: monetary policy

The differentiating effects of COVID-19 in Europe

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The coronavirus measures implemented by the EU and member states have had differentiating effects, which ultimately may lead to further fragmentation of the European political system, argues EU3D researcher Filippa Chatzistavrou. The COVID-19 pandemic has triggered a global health and economic crisis. According to the World Bank, it has caused the worst economic recession with […]

What can Italy’s economic ailments tell us about the euro area’s current slowdown?

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Even before the Covid-19 pandemic, the euro area slowdown was the result of EMU-induced domestic deflation. EU3D researcher Simona Piattoni offers a different reading of Italy’s disappointing economic performance.  Since 2011, Italy has been considered the single largest threat to the stability of the euro. Italy’s high and growing debt (€2300 bn, some 135% of […]

No extra time for the European Union

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The socio-economic effects of the coronavirus requires a massive and coordinated response from the EU. So far, the EU has not been up to the challenge, argues Marco Dani and Agustín José Menéndez.   The coronavirus pandemic has deepened and radicalised a set of crises that the European Union postponed but did not solve in […]

Could we be facing another Eurozone crisis?

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The gap between Italian and German yields widened to more than 2.2 percentage points, reversing more than half of the narrowing seen since the European Central Bank’s (ECB) announced its €750bn monetary stimulus. Italy’s borrowing costs remain above their levels at the beginning of the year. Investors worry about mounting debt to fund the country’s response […]

The future of Europe is being decided now

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Given the ravages of the coronavirus crisis, the future of Europe cannot be one of permanent division between its northern and southern states. We are going through the gravest European crisis since the integration project began. The divisions which emerged during the European Council on March 26th are unprecedented in the history of the European […]

A Deep Rift Within the Eurozone’s Most Important Institution

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This article has been published in the Hertie School’s student magazine, The Governance Post.  The European Central Bank’s (ECB) policy meeting in September was strained by dissent over the decision to launch another monetary easing package. Governing council members disagreed on the economic outlook, interest rates, and, most notably, new bond purchases. The spate of […]

Is German Dominance of the ECB Responsible for sub-optimal Monetary Policy in the Eurozone?

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By Sarah Fuchs German dominance over the European Central Bank (ECB) is nowhere more apparent than in the price stability goal of inflation at or below 2% enshrined in the Maastricht Treaty. A notable success in postwar Germany was the excellent record of the Bundesbank on maintaining price stability, which represented an important break with […]