mitigated funding needs and reduced interbank stress, and has had a significant impact on sovereign bond yields in southern euro … particularly in the southern euro area. Underlying structural problems relating to banks, the macroeconomic adjustment and the euro …

corporate taxes shifted to euro-area level; (ii) a support scheme based on deviations from potential output;(iii) an insurance …

needed. A common euro-area budget (1) should provide a temporary but significant transfer of resources in case of large … financial stability. The four main options for stabilisation of regional shocks to the euro area are: unemployment insurance …-wide shocks. It could serve as the fiscal backstop to the bank resolution authority. Resources amounting to 2 percent of euro …

Irrespective of the euro crisis, a European banking union makes sense, including for non-euro area countries, because … banking union. From the point of view of non-euro countries, the draft SSM regulation as amended by the EU Council includes … applicability of national macro-prudential measures. Non-euro countries will also have the right to leave the SSM and thereby exempt …

Euro-area inflation has been below 1 percent since October 2013, and medium-term inflation expectations are well below … forcefully, but should undermine neither the major relative price adjustments between the euro-area core and the periphery that …

The construction of the euro area left aside the question of a fiscal union, but the crisis re-opened the debate. Of … last provides a clear justification for fiscal policy at euro-area level. Unsustainable fiscal policies in one member state … could destabilise the entire euro area, and national policies could also have direct and indirect demand effects with an …