In this contribution, Stefano Micossi, Alexandra D'Onofrio and Fabrizia Peirce examine the influence of the euro on the German economy and the role Germany has played in the evolution of Europe's economic and monetary union.This paper describes four features of the German economy which lie at...

This Policy Insight discusses sovereign debt management in the euro area, where the COVID-19 crisis has caused a huge increase in such debts. Our two main conclusions are that sovereign debt externalities remain important in the euro area, even in the new environment of permanently lowered...

A repetition of austerity policies of the early 2010s is not consistent with maintaining adequate growth and sovereign debt sustainability in the post-pandemic environment, argue the authors of this CEPS Policy Insight.Likewise, a debt restructuring process with deep haircuts will just upset the...

One proposition that commands universal agreement is that the euro deserves a greater international role, justified by the size of the European economy and the importance of its international trade and financial markets. And yet, as I will briefly summarize, the evidence is that nothing of the...

This paper reviews the causes of the ongoing crisis in the eurozone and the policies needed to restore stability in financial markets and reassure a bewildered public. Its main message is that the EU will not overcome the crisis until it has a comprehensive and convincing set of policies in place;...

In the run-up to the emergency European Council meeting at the end of June, Stefano Micossi outlines in this Policy Brief the main elements of a realistic and yet incisive policy package, capable of reassuring financial markets and a bewildered public opinion. It is more than Germany has been...

The eurozone is in recession and will show negative growth in 2012, notes Stefano Micossi in this new CEPS Policy Brief. Hopes that fiscal consolidation could spur growth by improving household and business confidence are not materializing, because in reality, domestic demand has been hit too...

Stefano Micossi argues in this paper that the Basel framework for bank prudential requirements is deeply flawed and that the Basel III revision has failed to correct these flaws, making the system even more complicated, opaque and open to manipulation. In practice, he finds that the present...

After an in-depth review of the Stability and Growth Pact, the authors of this CEPS Policy Brief conclude that there is sufficient flexibility within the Pact to accommodate any unexpected drop in economic activity and has ample margin to finance structural reforms during transition to the new...

This CEPS Policy Brief examines the provisions for bail-in in the European Union – that is, the principle whereby any public measure to recapitalise a bank with insufficient prudential capital must be preceded by a write-down or conversion into equity of creditors' claims – in state aid...