A More Political Euro? The ‘Displacement Effect’ of the Eurozone in Times of Crisis

A MORE POLITICAL EURO THE ‘DISPLACEMENT EFFECT’ OF THE EUROZONE IN TIMES OF CRISIS

An Introduction to the Future Europe Journal Issue 2 1. Two different models of monetary integration in times of crisis No political or economic institution can escape change, either through mutation or adaptation to new conditions. Indeed, sometimes radical change becomes necessary. Ideally an institution should be designed to be flexible enough for change to […]

COVID-19 and the Triumph of the ‘Unconstrained Vision of Humankind’ 

COVID-19 AND THE TRIUMPH OF THE ‘UNCONSTRAINED VISION OF HUMANKIND’

Abstract Genuine emergencies, such as the COVID-19 pandemic, can be used by politics to foster particular policy goals. To avoid ‘wasting a crisis’ meant inflating the public budget, with no measures immediately related to healthcare or other social spending. In the European Union, this process took the form of the ‘Next Generation EU’ funds. Increasing […]

The EU Recovery Plan as Politics

The EU Recovery Plan as Politics

Abstract The ‘Recovery Plan for Europe’ launched in 2021 is aimed at setting the EU economy back on its feet after COVID-19 and modernising a society left behind by technological transformation. It is also surreptitiously intended as another step towards making Europe more federal. The Plan consists of a €1.3 trillion seven-year budget paid for […]

Has Central Bank Independence Suffered from COVID-19?

as Central Bank Independence Suffered from COVID-19

Abstract Central banks have been involved in the financing of governments since the emergence of the Bank of England in the seventeenth century It has long been recognised that such finance of governments can lead to substantial falls in the value of money and thus in the predictability of its purchasing power and its associated […]

Which Constitutional Economics for the Two-Decade-Old Eurozone?

Which Constitutional Economics for the Two Decade Old Eurozone?

Abstract The twentieth anniversary of the euro brings to light the feats and flaws of the European integration process and gives occasion to revise its peculiar configuration. This article contains reflections from a legal and economic perspective and is aimed to provide readers with an assembled vision of the monetary, fiscal, and constitutional features of […]

Assessment of the ECB Monetary Strategy Review, 2021: Does the New Strategy of the ECB Secure the Purchasing Power of the Euro over the Long Term?

Assessment of the ECB Monetary Strategy Review, 2021: Does the New Strategy of the ECB Secure the Purchasing Power of the Euro over the Long Term?

Abstract The European Central Bank (ECB)’s Monetary Policy Strategy Review (MPSR) conducted in 2020–2021 provides little certainty as to whether the next few years will be more inflationary than the past decade, when the Eurozone persistently undershot its inflation target. Since the outcome of the MPSR will depend on the average growth rate of M3, […]

Can the Eurozone Manage Its Free Rider Problem?

an the Eurozone Manage Its Free Rider Problem?

Abstract European monetary integration has from the outset faced a potential ‘free rider problem’. The essence of the problem is that one or more member states may be tempted to borrow heavily from the European Central Bank (ECB) regardless of the impact on inflation for the entire Eurozone. Inflation for the whole area depends of […]

New Rules to Secure Fiscal Sustainability in the European Monetary Union

New Rules to Secure Fiscal Sustainability in the European Monetary Union

Abstract In this article, after a brief introduction to the evolution and enforcement problems of the fiscal rules set up so far to achieve stability and growth of the Euro area, new fiscal rules are proposed to avoid the successive breaches of the current ones. We argue that the adoption of clear and detailed new […]

Banking Union: An Incomplete Building

Banking Union

Abstract Banking union is the most fundamental change in the institutional design of the European Union since the advent of monetary union. The centralisation of responsibilities for the supervision and resolution of significant credit institutions is a ‘game changer’ in the history of European integration. This contribution considers several gaps in the governance of banking […]