Macroeconomics & the euro

Sound public finances require more than low budget deficits

Sound public finances require more than low budget deficits

Simon Tilford
04 January 2013
Small budget deficits are no guarantee of sustainable public finances: Europe needs higher inflation and growth if it is to stem the rise in public debt.
Austerity report

Europe's future in an age of austerity

John Springford, Philip Whyte, Simon Tilford
18 December 2012
The CER invited leading economists and policy-makers to debate the implications of fiscal austerity for economic, political and monetary stability.
A multi-tier Europe? The political consequences of the euro crisis

A multi-tier Europe? The political consequences of the euro crisis

Katinka Barysch
07 December 2012
Euro members must integrate more to save the single currency. But will a two-tier EU destroy the single market and lose the support of the people?
What a banking union means for Europe

What a banking union means for Europe

Philip Whyte
05 December 2012
A full banking union is needed to stabilise the eurozone. However, even an embryonic union could drive a wedge between the eurozone and the EU-27.
Germany's opposition and the euro crisis

Germany's opposition and the euro crisis

Katinka Barysch
26 November 2012
Although Germany’s next general election is not scheduled until October 2013, the campaign started in earnest on 28 September 2012.
Eurozone: Trouble in the core?

Eurozone: Trouble in the core?

Simon Tilford
26 November 2012
Many people lazily assume that the eurozone is now split into a strong, prosperous core and a weak, depressed periphery.
Economic recovery requires a better deal for labour

Economic recovery requires a better deal for labour

Simon Tilford
05 November 2012
Unless labour receives a larger share of the pie, Europe's economic recovery will prove elusive and popular hostility to markets will grow.
Will the euro crisis lead to the break-up of EU member-states?

Will the euro crisis lead to the break-up of EU member-states?

Tomas Valasek
24 October 2012
The crisis is fuelling separatism in Spain and Belgium. But elsewhere in Europe separatists do poorly. Scotland's example may yet discourage others from following Catalonia and Flanders.
Political Union

Alice in euroland: What political union for the single currency?

Philip Whyte
09 October 2012
The eurozone needs to be embedded in a 'political union' if it is to work better. The question is: what sort of political union?
How to build European services markets

How to build European services markets

28 September 2012
European services markets are still overwhelmingly national. There are big economic gains to be made from opening them up. 
Europe’s leaders are casting around for ways to improve the EU’s economic performance. In the long term, a more integrated single market for services could improve Europe’s weak productivity growth. The...
Eurozone: Are the building blocks falling into place?

Eurozone: Are the building blocks falling into place?

Simon Tilford
26 September 2012
On the face of it, September was a good month for the euro. For once, market expectations were met. The European Central Bank (ECB) belatedly opened the way for action to address the ruinous polarisation of government borrowing costs in the eurozone.
Bulletin issue 86

Issue 86 - 2012

Clara Marina O'Donnell, Hugo Brady, Simon Tilford
26 September 2012
François Hollande

Hollande, the Germans and 'political union'

25 September 2012
François Hollande wants a more equal Franco-German relationship. But tensions over managing the eurozone crisis and reforming EU treaties are straining that relationship.
How seriously can investors take Draghi's assurances?

How seriously can investors take Draghi's assurances?

Simon Tilford
31 August 2012
The ECB's upcoming programme of government bond purchases will not be big enough to dispel investors' fears that troubled euro members might quit the currency union.
Will a new German constitution save the euro?

Will a new German constitution save the euro?

Katinka Barysch
29 August 2012
German politicians from government and opposition want a referendum on a new pro-European constitution. But this does not mean that Berlin is preparing for eurobonds.
A banking union – it is necessary, but is it likely?

A banking union – it is necessary, but is it likely?

Philip Whyte
27 July 2012
Could the EU's summit of June 29 come to be regarded as a watershed? Following umpteen crisis summits that have failed to tackle the root causes of the eurozone crisis, EU leaders finally got to the heart of the matter: the need to break the vicious interaction between weak banks...
Britain, Europe and the City of London

Britain, Europe and the City of London: Can the triangle be managed?

Philip Whyte
20 July 2012
The City of London's future will be shaped not just by a tougher regulatory environment, but also by uncertainties about Britain's relations with the EU.
Has the eurozone reached the limits of the politically possible?

Has the eurozone reached the limits of the politically possible?

Simon Tilford
12 July 2012
The limited measures agreed at June's summit are unlikely to take effect, suggesting that the eurozone has already reached the limits of the politically possible.