Challenges for the euro area [What Think Tanks are thinking]

Written by Marcin Grajewski,

In June, the Heads of State or Government of the countries sharing the euro currency will discuss ways to improve the functioning of the euro area. French President Emmanuel Macron has proposed an ambitious reform plan, but Germany, the euro area’s economic powerhouse, is more cautious. Despite continued growth, after years of stagnation, the euro area needs better governance to meet future challenges, economic analysts say. They add that recent political developments in Italy may complicate the drive for reform, as could unstable political situations elsewhere.

This note brings together commentaries, analyses and studies by major international think tanks and research institutes on challenges facing the euro area and related issues. Earlier publications on the topic can be found in a previous edition of ‘What Think Tanks are Thinking’ published in December 2017.

Why Italy will confront the EU, but stay in the euro
Centre for European Reform, June 2018

Italy’s hazardous new experiment: Genetically modified populism
Brookings Institution, June 2018

The EU must realize that populism is a symptom of real policy failure
Chatham House, May 2018

How to exit the euro in a nutshell ‘Il Piano Savona’
Centre for European Policy Studies, June 2018

Mattarella’s line in the sand
Bruegel, June 2018

Italy heads for confrontation with itself, financial markets, and Europe
Peterson Institute for International Economics, May 2018

Quit kicking the can down the road: A Spanish view of EMU reforms
Real Instituto Elcano, May 2018

Turmoil in euro area spreads as Rajoy’s government is ousted in Spain
Atlantic Council, May 2018

Italy is too big to fail
Atlantic Council, May 2018

Does the euro area need a safe or a diversified asset?
Centre for European Policy Studies, May 2018

Are SBBS really the safe asset the euro area is looking for?
Bruegel, May 2018

Capital position of banks in the EMU: An analysis of Banking Union scenarios
Netherlands Bureau for Economic Policy Analysis, May 2018

Fiscal rules and the role of the Commission
Bruegel, May 2018

Tackling non-performing loans in the euro area
Institut der deutschen Wirtschaft, May 2018

Completing Europe’s Banking Union means breaking the bank-sovereign vicious circle
Peterson Institute for International Economics, May 2018

EFN report: Economic outlook for the euro area in 2018 and 2019
Robert Schuman Centre for Advanced Studies, April 2018

Macron, Merkel and the new European sovereignties
Real Instituto Elcano, April 2018

Convergence in the European Union: Inside and outside the euro
Centre for European Policy Studies, April 2018

Should Bulgaria join the euro now?
Jacques Delors Institut Berlin, April 2018

Une finance au service du développement de long terme en Europe
Confrontations Europe, April 2018

Quelles perspectives pour renforcer la zone euro?
Confrontations Europe, April 2018

The European ETF market: What can be done better?
Centre for European Policy Studies, April 2018

Making a reality of Europe’s capital markets union
Bruegel, April 2018

State contingent debt as insurance for euro-area sovereigns
Bruegel, April 2018

Economic recovery and inflation
Center for Social and Economic Research, April 2018

Reforming the European Monetary Union: The challenge of reconciling risk sharing with market discipline
Istituto Affari Internazionali, April 2018

How to solve the Greek debt problem
Peterson Institute for International Economics, April 2018

Debt mutualisation, inflation and populism in the euro zone
Real Instituto Elcano, April 2018

Market discipline and liquidity key issues in the EMU reform
Research Institute of the Finnish Economy, April 2018

The fallacy of fiscal discipline
LUISS School of European Political Economy, April 2018

No escape from politics: Four tests for a successful fiscal instrument in the euro area
Notre Europe, Bertelsmann Stiftung, March 2018

Cash outflows in crisis scenarios: Do liquidity requirements and reporting obligations give the SRB sufficient time to react?
Bruegel, March 2018

Domestic banks as lightning rods? Home bias during the euro zone crisis
Centre for European Policy Studies, March 2018

Is the bank-sovereign link truly severed?
College of Europe, March 2018

The search for a euro area safe asset
Peterson Institute for International Economics, March 2018

Enhancing credibility and commitment to fiscal rules
Center for Social and Economic Research, March 2018

The new global economic governance: Can Europe help win the peace?
LUISS School of European Political Economy, March 2018

Macron’s plans for the euro
Centre for European Reform, February 2018

The missing third leg of the euro architecture: National wage negotiations
Peterson Institute for International Economics, February 2018

ECB interventions in distressed sovereign debt markets: The case of Greek bonds
Institut für Weltwirtschaft Kiel, February 2018

The effects of unconventional monetary policy in the euro area
Netherlands Bureau for Economic Policy Analysis, February 2018

The euro paradox: Explaining the resilience of the single currency
Stiftung Wissenschaft und Politik, January 2018

Tales from a crisis: Diverging narratives of the euro area
Bruegel, February 2018

Some unpleasant euro arithmetic
Centre d’études prospectives et d’informations internationales, January 2018

Bank liquidation in the European Union: Clarification needed
Bruegel, January 2018

Risk reduction through Europe’s distressed debt market
Bruegel, January 2018

Reconciling risk sharing with market discipline: A constructive approach to euro area reform
Centre for Economic Policy Research, January 2018

Reconciling risk sharing with market discipline
LUISS School of European Political Economy, January 2018

Oil price shocks, monetary policy and current account imbalances within a currency union
Centre for European Policy Studies, January 2018

Low interest rate environment amplifies negative effects of austerity policy
Deutsche Institut für Entwicklungspolitik, January 2018

Read this briefing on ‘Challenges for the euro area‘ on the Think Tank pages of the European Parliament.