Past Event

What reforms for Europe’s Monetary Union: a view from Spain

How is a successful European Monetary Union still possible in today's ever-shifting political landscape? What reforms need to occur in order to guarantee success of cohesive policies?

Date: June 19, 2019, 12:30 pm Topic: European Macroeconomics & Governance

VIDEO & AUDIO RECORDINGS

Bruegel was happy to host a discussion about the following issues: the completion of a Monetary Union in an evolving international community, a European monetary policy and financial system, and lessons learned through the past year in the European economy.

This event featured the presentation of the Euro Yearbook 2018, where the authors set out to describe, analyse, and discuss the process leading to a European Monetary Policy. The results were presented by the project’s director Fernando Fernández.

Afterwards, a discussion proceeded regarding the takeaways from the 2018 Yearbook in light of the current European debate.

summary

Reforming the Monetary Union is one of the main challenges faced by the EU.

José Carlos García de Quevedo introduced the conference topic by stressing that these reforms must be carried out in a complex context characterized by negotiations over Brexit, US-China trade war and rise of populism in Europe.

Fernando Fernández presented the Euro Yearbook 2018, where practitioners, academics and policy-makers’ views on the recent evolution of the EMU have been collected. He compared their ideas and then gave his own view.

He discussed the three sections of the book:
1) What the Euro wants to do when it “grows up”. The main point of this section is to understand what the ECB has to do to become more similar to traditional Central Banks.
2) Analysis of Monetary policy and the banking system.
3) What is necessary to complete the EMU. Fiscal union and banking union are discussed.

First of all he identified the political problems hampering an effective implementation of necessary reforms. He was doubtful on whether people want the Euro to survive. Second, in his opinion the ECB needs to “normalize” itself and strive to fulfil the tasks that the other main CBs in the world do. In addition, the Banking Union has to be completed through the implementation of its third pillar (the European Deposit Insurance Scheme). Fourth, the Union also needs a single insolvency procedure (not only a single Resolution Mechanism). Such a procedure would help to liquidate banks with the same rules across Europe. With this respect, there is another point that needs to be addressed: a significant part of the banking system in several EU countries is protected by governments and not subjected to competition and the discipline of the market. Fifth, Mr. Fernandez pointed out the necessity to enforce the European fiscal rules. In reference to this point, fiscal capacity at European level must be developed and a European safe assets (Eurobonds) needs to be established. Eurobonds would strengthen the role of Euro as an international reserve currency.

Gabriele Giudice dealt with the issue of the political will to reform the Union. The evolving international challenges are persuading European people and countries that the right time to start reforms is approaching.
He then went back to the issues concerning the completion of the Banking Union and potential introduction of Euro safe assets. He also emphasised that reforming the legal framework of the ESM is crucial.

Isabel Riaño highlighted the importance of discussions on reforms while European institutions are renewed after the European elections. In her opinion, European policy-makers know what has to be done to reinforce and deepen the Monetary Union. They are also aware of the challenges that are emerging, like the rise of populism. In spite of these difficulties, she sees many chances for the EU to overcome its difficulties and move ahead. In this context she underlined the major role of risk sharing policies within the European banking system.

Afterwards she assessed the stage at which the EU currently is. Expected rise of populism did not materialize in the last elections. Brexit has been definitely affecting negatively the European project, but is also bringing all the European countries together. The same is true for the international trade war. Also, the Franco-German axis is essential but is not enough to move the European agenda forward. With this respect, Spain could play a major role.

At the end of the conference the panellists discussed the concrete chances the EU has to implement its reforming agenda and answered questions about fiscal rules, rule violation, possible European treasury, and progress in the Banking Union.

EVENT MATERIALS

Euro Yearbook 2018

Euro Yearbook Executive Summary 2018

The event will be livestreamed. There is no need to register for the livestream.

Schedule

Jun 19, 2019

12.30-13.00

Check-in and lunch

13.00-13.05

Introduction

José Carlos García de Quevedo, President, ICO

Javier Méndez Llera, Executive Director, FEF

13.05-13.20

Presentation of the Euro Yearbook 2018

Fernando Fernández, Director, Annual Review of the Euro

13.20-14.10

Comments and panel discussion

Chair: Inês Goncalves Raposo, Former Affiliate Fellow

Fernando Fernández, Director, Annual Review of the Euro

Gabriele Giudice, Head of Unit, European Commission, DG ECFIN

Isabel Riaño, Deputy Director, Cabinet of the Spanish Economy Minister

14.10-14.30

Q&A

14.30

End

Speakers

Fernando Fernández

Director, Annual Review of the Euro

José Carlos García de Quevedo

President, ICO

Gabriele Giudice

Head of Unit, European Commission, DG ECFIN

Inês Goncalves Raposo

Former Affiliate Fellow

Javier Méndez Llera

Executive Director, FEF

Isabel Riaño

Deputy Director, Cabinet of the Spanish Economy Minister

Location & Contact

Bruegel, Rue de la Charité 33, 1210 Brussels

Matilda Sevon

matilda.sevon@bruegel.org

Read about event More on this topic

Upcoming Event

Oct
29
08:30

Bank resolution: consistency and predictability

Closed-door workshop on various aspects of bank resolution.

Speakers: Rebecca Christie, Jon Cunliffe, Martin J. Gruenberg, Elke König, Pamela Lintner, Martin Merlin, Maria Velentza, Nicolas Véron and Guntram B. Wolff Topic: Finance & Financial Regulation Location: Bruegel, Rue de la Charité 33, 1210 Brussels
Read article More on this topic More by this author

Opinion

Europe: en finir avec la politique en silos

Projetée dans un monde de rapport de force dont les principaux protagonistes ne séparent pas géopolitique et économie, l’UE va devoir conduire un changement de logiciel culturel, une mutation organisationnelle et un rééquipement opérationnel, explique l’économiste Jean Pisani-Ferry.

By: Jean Pisani-Ferry Topic: European Macroeconomics & Governance Date: October 8, 2019
Read about event More on this topic

Past Event

Past Event

A fresh perspective on EU-Turkey relations: still a possibility?

Examining the mutual benefits of a EU-Turkey customs union.

Speakers: Zeynep Bodur Okyay, André Sapir, Sinan Ülgen and Guntram B. Wolff Topic: European Macroeconomics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: October 3, 2019
Read article More on this topic More by this author

Podcast

Podcast

Deep Focus: What's slowing the Mercosur agreement?

The EU-Mercosur has been 20 years in the making, but a hostile trading environment, unpredictable government and growing environmental concerns are putting it in peril. Is the deal worth fighting for and can it be saved? And could it become a casualty Brazil's forest fires?

By: The Sound of Economics Topic: Global Economics & Governance Date: September 27, 2019
Read article Download PDF

External Publication

European Parliament

Challenges ahead for the European Central Bank: Navigating in the dark?

Since the second half of 2018, signs of a slowdown have been piling up in the euro area. The ECB will face major challenges in this potentially difficult period: its main tools are nearly exhausted, the monetary union in which it operates is still incomplete, and it lacks the understanding of what the ‘new normal’ looks like. The authors, therefore, urge the ECB to review its strategy and framework to be able to face these challenges.

By: Grégory Claeys, Maria Demertzis and Francesco Papadia Topic: European Macroeconomics & Governance, European Parliament, Testimonies Date: September 25, 2019
Read about event

Past Event

Past Event

Climate change and the role of central banks

What connections exist between central banks and climate change, and what are the resulting implications?

Speakers: Emanuele Campiglio, Paul Hiebert, Pierre Monnin, Kjell G. Nyborg, Luiz Awazu Pereira da Silva, Mario Quagliariello, Mattia Romani, Paweł Samecki and Dirk Schoenmaker Topic: Energy & Climate, European Macroeconomics & Governance Location: Narodowy Bank Polski, Świętokrzyska 11/21, 00-919 Warsaw Date: September 16, 2019
Read article More on this topic More by this author

Blog Post

Argentina, plus ça change…

Recent primary elections in Argentina saw the defeat by a wide margin of President Macri. This fueled market volatility given expectations of a reversal of reforms after national elections in October; the recent re-introduction of capital controls attests to the extent of the economic fallout. With Macri’s end in sight, this post will review the evolution of the Argentinian economy during his term.

By: Marta Domínguez-Jiménez Topic: Global Economics & Governance Date: September 9, 2019
Read article More on this topic More by this author

External Publication

La Banca centrale europea

This external publication delves into the new responsibility given to the European Central Bank: supervision on banks in the euro-area. It tells its history and illustrates its functions, structure and responsibilities and the exceptional answers to respond to the "perfect storm" of the crisis.

By: Francesco Papadia Topic: European Macroeconomics & Governance Date: July 31, 2019
Read article More on this topic More by this author

Blog Post

Modernising European Competition Policy: A Brief Review of Member States’ Proposals

French, German and Polish governments have jointly proposed options for modernising EU competition policy. The debate to recalibrate European competition rules was already well underway. So, it is not surprising that proposals are consistent with other statements made by France and Germany. Yet, proposals do not address current issues weighing on the international competition community, such as conglomerate effects theory or algorithmic collusion.

By: Mathew Heim Topic: Innovation & Competition Policy Date: July 24, 2019
Read article More on this topic

Opinion

EU policy recommendations: A stronger legal framework is not enough to foster national compliance

In 2011, the EU introduced stricter rules to monitor the implementation of country-specific policy recommendations. Using a new dataset, this column investigates whether these new laws have increased national compliance. There is no evidence that these stricter processes matter for implementation rates, whereas macroeconomic fundamentals and market pressure are important determinants of implementation progress. These results suggest ways to improve the effectiveness of European policy coordination that go beyond stronger legal processes.

By: Konstantinos Efstathiou and Guntram B. Wolff Topic: European Macroeconomics & Governance Date: July 23, 2019
Read article More on this topic More by this author

Opinion

The EU needs a bold climate strategy

Scientists report that global temperature increases must be limited to below 1.5 degrees Celsius. With global greenhouse gas emissions continuing to increase and rising temperatures driving up the frequency of extreme weather events, the world needs a greater commitment to climate policy.

By: Guntram B. Wolff Topic: Energy & Climate Date: July 19, 2019
Read about event More on this topic

Past Event

Past Event

The 4th industrial revolution: opportunities and challenges for Europe and China

What is the current status of EU-China relations concerning innovation, and what might their future look like?

Speakers: Elżbieta Bieńkowska, Chen Dongxiao, Patrick Child, Eric Cornuel, Maria Demertzis, Ding Yuan, Luigi Gambardella, Jiang Jianqing, Frank Kirchner, Pascal Lamy, Li Mingjun, Gwenn Sonck, Gerard Van Schaik, Reinhilde Veugelers, Wang Hongjian, Guntram B. Wolff, Xu Bin, Zhang Hongjun and Zhou Snow Topic: Global Economics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: July 12, 2019
Load more posts