Search

Begin New Search Publishing Institution Centre for European Policy Studies Publication Year within 25 Years

161. The financial crisis and citizen trust in the European Central Bank

Author:
Daniel Gros and Felix Roth
Publication Date:
07-2010
Content Type:
Working Paper
Institution:
Centre for European Policy Studies
Abstract:
Trust in the ECB, as measured by the standard Eurobarometer (and other) surveys has fallen to an unprecedented low – especially in the larger euro area countries. The authors find that up to the start of the recession in 2008, trust in the ECB was little affected by business cycle variables such as growth and inflation. This changed radically with the recession, with trust in the ECB becoming correlated quite closely with growth. However, even the recovery of growth in 2009 was not sufficient to restore trust in the ECB to previous levels. This finding implies that European citizens seem to have placed a heavy share of the blame on the European Central Bank for the real economic downturn caused by the financial crisis.
Topic:
Economics, International Trade and Finance, and Monetary Policy
Political Geography:
Europe

162. The Political Economy of India's Climate Agenda

Author:
Noriko Fujiwara
Publication Date:
03-2010
Content Type:
Working Paper
Institution:
Centre for European Policy Studies
Abstract:
This Working Document complements the CEPS Policy Brief, Understanding India's climate agenda, and elaborates on three key issues related to the country's energy challenges: access to energy, the future emissions trajectory and energy subsidies. This study looks into the making and framing of the country's domestic climate agenda from a political economy perspective. As long as both GDP and primary energy demand keep growing at the current rates, it may be concluded that the country's future, absolute greenhouse-gas emissions are also likely to grow but remain relatively low. Moreover, India's emissions intensity is expected to continue declining in line with the recent voluntary pledge by the Indian government. The study takes note of the national action plan launched in India, and the adoption of a flexible approach in international negotiations while maintaining a preference for several core principles, including equity. Lastly, the study explores the possibility for addressing issues such as international and intra-national equity in the context of the long-term EU–Indian partnership.
Topic:
Climate Change, Development, Economics, Energy Policy, and Industrial Policy
Political Geography:
India

163. Adjustment Difficulties in the GIPSY Club

Author:
Daniel Gros
Publication Date:
03-2010
Content Type:
Working Paper
Institution:
Centre for European Policy Studies
Abstract:
This paper describes the key economic variables and mechanisms that will determine the adjustment process in those euro area countries now under financial market pressure. (Greece, Ireland, Portugal, Spain and Italy = GIPSY) The key finding is that the adjustment will be particularly difficult for Greece (and Portugal) because these are two relatively closed economies with low savings rates. Both of these countries are facing a solvency problem because they combine high debt levels with low growth and high interest rates. Fiscal and external adjustment is thus required for sustainability, not just to satisfy the Stability Pact. By contrast, Ireland and Spain face more of a liquidity than a solvency problem. Italy seems to have a much better starting position on all accounts. Fiscal adjustment alone will not be sufficient to ensure sustainability. Without significant reductions in labour costs, these economies will face years of stagnation at best. Especially in the case of Greece, it is imperative that the cuts in public sector wages are transmitted to the entire economy in order to restore competitiveness, and thus ensure that export growth can become a vital safety valve. Without an adjustment of wages in the private sector, the adjustment will become so difficult that failure cannot be excluded.
Topic:
Debt, Economics, Monetary Policy, and Financial Crisis
Political Geography:
Europe, Greece, Spain, Italy, Portugal, and Ireland

164. Restoring Investor Confidence in European Capital Markets

Author:
Diego Valiante
Publication Date:
02-2010
Content Type:
Working Paper
Institution:
Centre for European Policy Studies
Abstract:
Investors have a longer memory than the sell‐side of the market. To regain their trust, intensive work needs to be done in the coming years. The new European Commissioner of the Internal Market, Michel Barnier, will play a pivotal role here. In the area of capital markets, he will need the support of a determined European Parliament, a strong commitment from the Council and Member States, as well as active contributions from the CESR/ESMA , other Level 3 Committees/Authorities and national supervisors. We believe that participants in capital markets share the same goal: to make them as efficient and effective as possible. The ability to collect savings and allocate them to investment, and to allow all participants to defray risk, is at the heart of any successful modern economy. This requires effective regulation that not only mandates common standards, but also promotes accountability, responsibility and transparency, while at the same time encouraging innovation. Effective regulation must not impose undue costs, if markets are to remain efficient and effective. However, we should be conscious that the crisis has been so deep that there is a collective need to go back to the basic principles of financial regulation and supervision.
Topic:
Economics, International Trade and Finance, and Financial Crisis
Political Geography:
Europe

165. Understanding India's Climate Agenda

Author:
Christian Egenhofer and Noriko Fujiwara
Publication Date:
02-2010
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies
Abstract:
India has become an important partner for the EU in both multilateral and bilateral relations in a wide range of policy areas, including energy and climate change. Despite the strategic importance of this partnership, there may be insufficient awareness and understanding among EU stakeholders a bout India's development needs and challenges, its high degree of vulnerability to the impacts of climate change and the actions it has taken domestically and in international fora to address climate change. The country is among those rapidly and steadily growing economies with an increasing share of greenhouse gas (GHG) emissions, although it starts from a very low emissions base.
Topic:
Climate Change, Development, Economics, Energy Policy, and Industrial Policy
Political Geography:
India

166. Future Impacts of Climate Change across Europe

Author:
Arno Behrens, Anton Georgiev, and Maelis Carraro
Publication Date:
02-2010
Content Type:
Working Paper
Institution:
Centre for European Policy Studies
Abstract:
This CEPS Working Document reviews the potential impacts of climate change on 11 key indicator categories and 3 large regions covering the entire European Union. Although there remains a considerable degree of uncertainty about local and regional effects, the paper highlights strong distributional patterns. Northern Europe might even experience some positive effects, while the Mediterranean will mostly be negatively affected. Still, the cumulative impacts of climate change on poorer countries will also affect northern European countries, as growing water scarcity and other repercussions in Mediterranean countries could pose social and security challenges through increasing risks of conflicts and migration pressures.
Topic:
Climate Change, Energy Policy, and Industrial Policy
Political Geography:
Europe

167. Information Sharing and Cross-Border Entry in European Banking

Author:
Caterina Giannetti, Nicola Jentzsch, and Giancarlo Spagnolo
Publication Date:
02-2010
Content Type:
Working Paper
Institution:
Centre for European Policy Studies
Abstract:
Asymmetries can severely limit the cross-border border expansion of banks, if entering banks can only obtain incomplete information about potential new clients. Such asymmetries are reduced by credit registers, which distribute financial data on bank clients. Asymmetrically distributed information and adversely selected pools of borrowers constitute severe barriers for foreign banks when they enter new markets. In many instances, these problems force banks to either form 'alliances with incumbents' or simply enter through mergers and acquisitions (M). Yet such entry modes do not automatically lead to intensified competition as they may leave the number of competitors unchanged. Thus, institutions that reduce information asymmetries in credit markets (thereby encouraging entry through branches) may be very important if the objective is strengthening competition in addition to market integration. Recently, these institutions – credit registers – have received greater attention among academics and policy-makers in Europe, although there is still a remarkable lack of understanding of their empirical impact on banking.
Topic:
Economics, International Trade and Finance, Markets, and Monetary Policy
Political Geography:
Europe

168. On Thin Ice? (Mis)interpreting Russian Policy in the High North

Author:
Roderick Kefferputz
Publication Date:
02-2010
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies
Abstract:
Climate change in the Arctic is expected to make the region a lot busier as new strategic resources become available. The Russian Federation is a key player in this context, having put forth a comprehensive Arctic strategy. Russian policy towards the so-called High North, however, is oftentimes not seen in its entirety and has received a plethora of criticism in the Western media and foreign policy community. This paper aims to contribute to a better understanding of Russian actions in the High North by providing a succinct overview of Russian policies in the region and identifying the fundamental rationale behind them. The paper concludes that Russia's Arctic policy is not only a lot more nuanced but also not very different from the policies conducted by other riparian states.
Topic:
Climate Change and Energy Policy
Political Geography:
Russia and Europe

169. Crisis in the eurozone and how to deal with it

Author:
Paul De Grauwe
Publication Date:
02-2010
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies
Abstract:
The crisis that started in Greece culminated into a crisis of the Eurozone as a whole. How did we get into this mess? To answer this question it is useful to distinguish the three actors that have played a role in the development of the crisis: Greece, the financial markets (including the rating agencies) and the eurozone authorities. Let us analyse the role of these three actors in the drama.
Topic:
Economics and Markets
Political Geography:
Europe and Greece

170. The EU-Central Asia Education Initiative

Author:
Peter Jones
Publication Date:
02-2010
Content Type:
Working Paper
Institution:
Centre for European Policy Studies
Abstract:
The European Education Initiative was launched as part of the EU-Central Asia Strategy in 2007. By 2009, the initiative had prioritised higher and vocational education and emphasised links with the Bologna Process. Attempts were made to establish the EU- Central Asia Education Platform – a re-branding of Tempus and Erasmus Mundus programmes within a set of specific activities – and outline the ways in which internal EU education policy development processes could be externalised to the Central Asia region. However, the slow and uncertain pace of development of the Education Initiative, with the exception of the CAREN programme, calls for an analysis of the logic, content and practice of what has been attempted. It is also necessary to examine the political and institutional context that explains the lack of traction gained with education policy actors in the EU and Central Asia, and the prospects for a more compelling vision and a concrete programme of implementation that could meet the real and urgent needs of Central Asian countries. Drawing on the evidence provided by participants in the development of the Education Initiative, this paper concludes by outlining an agenda for addressing its weaknesses.
Political Geography:
Europe and Central Asia