Strengthening the ESM can help to prevent crises and enhance deeper financial integration in the euro area. Yet, mislabelling the ESM as “European Monetary Fund” will not do the trick. Instead, a revamp of its precautionary credit line could create a meaningful instrument, built on the existing policy framework, by incentivising strong economic policies and guarding against financial market turbulence. However, the devil is in the details. The design of such a facility has to be well thought through, to navigate difficult trade-offs.
On 14th June, Randall Henning will present his latest book on the Euro crisis and we will discuss how financial assistance should be governed in the euro area in the future.
Comparing and evaluating financial assistance programmes of four euro-area countries (Greece, Ireland, Portugal, and Cyprus) and three non-euro-area countries (Hungary, Latvia, and Romania) of the European Union in the aftermath of the 2007/08 global financial and economic crisis. Asian countries can draw several lessons from European experiences.
As Cyprus looks ahead to post-bailout growth, what lessons have been learnt from the crisis and subsequent bank restructuring?
Primary surplus picked up in June, but July is the key month to watch.
A reflection on the experience of Greece and other countries who have implemented rescue programs
Regaining the stability of the Greek financial sector is key, as a meltdown could lead to Grexit. The stability of the Greek financial system currently relies on the provision of ECB liquidity, which in turn is only available to solvent banks.
Bruegel launches a new video format to provide our audience with timely analysis anchored to some of the most topical economic news. In the first video of this series, Bruegel scholars evaluate the Troika’s financial assistance programmes in the eurozone. Director Guntram Wolff and Senior Fellows André Sapir and Zsolt Darvas answer how and when […]
Countries can make a clean exit from financial assistance, or enter a new programme or a precautionary programme, depending on the sustainability of their public debt and their vulnerability to shocks.
This study was presented to the ECON committee of the European Parliament.It provides a systematic evaluation of financial assistance for Greece, Ireland, Portugal and Cyprus. All four programmes, and in particular the Greek one, are very large financially compared to previous international programmes.
Interviewer: In Los Cabos, G20 leaders focused their response to Europe’s financial crisis on stabilizing banks and implement concrete steps towards a more integrated financial architecture that would also include common banking supervision and guarantees to repay bank depositors. What exactly does this mean? Jean Pisani-Ferry: What is striking in this G20 communiqué is the […]