Putting the high public debt ratios on a downward path after the surge during the pandemic and allocating sufficient resources to deliver on the green and digital transition will be among the priorities confronting the EU institutions emerging from the June 2024 European elections. After a long...

This background paper describes in detail the assumptions and calculations behind the results presented in Zsolt Darvas, Jean Pisani-Ferry and André Sapir 'A comprehensive approach to the euro-area debt crisis', Bruegel Policy Brief No 2011/02, February 2011. An assessment of the results and...

The euro area's sovereign debt crisis continues though significant steps have been taken to resolve it. This paper proposes a comprehensive solution to the crisis based on three pillars: a plan to restore banking sector soundness in the whole euro area, a resolution of sovereign debt crisis...

The EU faces the challenge to combine large and sustained investments to promote the transition towards a green, digital, and competitive Europe while maintaining fiscal sustainability. Based on a comprehensive literature review on the effects of fiscal rules and investment clauses on public...

Die Krise der Europäischen Währungsunion ist durch den Konflikt um das Hilfsprogramm für Zypern im März 2013 erneut aufgeflammt. Nach einem gescheiterten Anlauf haben die Finanzminister der Euroländer nunmehr eine ordnungspolitisch vertretbare Lösung gefunden. Ihre Vorgehensweise hat...

Assuming the eventual adoption of the Euro, the paper reviews the run-up and the medium run issues on the path towards the Euro. It shows that various policy options are possible, especially with respect to the exchange rate regime and management. It also shows the limits of monetary policy when...

Based on a panel data model this paper investigates whether the effects of fiscal policy on national saving in Europe have changed after the Maastricht Treaty came into force. Recently Giavazzi, Jappelli and Pagano (2000) found evidence that national saving responds nonlinearly to fiscal policy...

EU Member countries have shown different degrees of ambition to reach a budget position of ?close to balance or in surplus'. Differences in ambition can only partly be explained by the relative size of cyclical safety mar­gins or differences in the number of votes in the ECOFIN Council. It is...

The stability pact is intended to bind the hands of national fiscal policy with respect to debt and thus protect the euro as a common currency. To what extent the value of money is stable depends on the solidity of the government’s finances. To weaken the pact will imply a loss of confidence...