This paper investigates the impact of the European Union’s Emission Trading System (EU ETS) at a firm level. Using panel data on the emissions and performance of more than 2000 European firms from 2005 to 2008, we are able to analyse the effectiveness of the scheme. The results suggest that...

Banking and sovereign risk in the euro area are highly correlated. This working paper sheds light on the link. We study the stock market performance and the holdings of government debt of the banks stress tested by the European Banking Authority in July and December 2011. Banks’ holdings of...

There were fears in the European Union that eastern enlargement would lead to major job losses and transfers. More recently, these fears have extended to high-skilled and IT jobs. This paper examines using unique firm-level data if these fears are justified for Austria and Germany. We find that...

This paper analyses the consequences for the European Patent System (EPS) of the recently ratified London Agreement (LA), which aims to reduce the translation requirements for patent validation procedures in 15 out of 34 national patent offices. The simulations suggest that the cost of patenting...

The large and growing US current account deficit has its counterpart in the large and growing current account surpluses in Asia and in the major oil-exporting countries. Although Europe is not part of the problem of global imbalances, Europeans are concerned that a disproportionately large...

The European Union was institutionally ill-prepared to manage the 2007-2008 financial crisis, with an inadequate architecture for resolving problems within the European single financial market. Throughout the period 2007-2009 the situation in the EU has been characterised by a lingering lack of...

The EU budget review process will restart as we approach the end of the current financial framework 2007-2013. This paper traces the history of the EU budget and draws lessons for the review to come. Whatever reforms are proposed, they must serve to shift spending to policy areas and instruments...

The European Semester is a new institutional process that provides EU member states with ex-ante guidance on fiscal and structural objectives. The Semester’s goals are ambitious and it is still uncertain how it will fit into the new EU economic governance framework. We find that member states...

[Introduction ...] The aim of this paper is to discuss this issue in the light of recent experience. It is divided into five sections. In section 2, we briefly discuss the economic benefits of macroeconomic stability and the rationale for government policies playing an active role in delivering...

This paper empirically investigates if corporate governance practices affect the resources firms devote to R&D. Two databases - one on governance ratings and the other on R&D intensity - are merged to obtain a multi-country, multi-sector sample of 279 European companies involved in R&D...