454 research outputs found
Avoiding a new European divide
No full textThe financial crisis, which is now hitting the new member states severely, highlights the shortcomings of the existing institutional architecture in Europe. Current strains reflect a revaluation of risks but they also result from policy mistakes. In this policy brief, Zsolt Darvas and Jean Pisani-Ferry show that some of the non euro-area new member states suffer from serious vulnerabilities, to which policy has been slow to respond. They believe that the crisis management in the euro area has had the unintended consequence of putting non euro-area new member states at disadvantage. These are unhealthy developments and without decisive action, a new political and economic divide within Europe may emerge.
Járvány-lét-helyzetek : A Covid19-világjárvány hatása a mindennapokra és a társadalomkutatásra
No full text
The Baltic challenge and Euro-area entry. Bruegel Policy Contribution 2009/13, November 2009
No full textResident Fellow Zsolt Darvas takes a look at the issue of the Baltic states - Estonia, Latvia and Lithuania - and the challenges facing those three countries in the aftermath of the financial crisis. He argues that because it is in the broader European interest to prevent a collapse in the Baltics, the best option is immediate euro entry at a suitable exchange rate supported by appropriate resolution in order to manage the resulting debt overhang. However, there seems to be no legal basis for this under the current euro accession criteria. Furthermore, the economic foundations of the criteria are fundamentally flawed, as euro-area members continue to violate the criteria while the EU's expansion to 27 members has made the criteria tougher for new member states to meet themselves. Ultimately, the European Council has the ability to reform the criteria without a formal treaty change. The Council should do so, the author argues, and allow for more meaningful benchmarks for all future euro-area applicants
Exchange Rate Policy and Economic Growth after the Financial Crisis in Central and Eastern Europe
No full textIn a paper on the effects of the global financial crisis in Central and Eastern Europe (CEE), the
author reacts to a paper of Åslund (2011) published in the same issue of Eurasian Geography and
Economics on the influence of exchange rate policies on the region’s recovery. The author argues
that post-crisis corrections in current account deficits in CEE countries do not in themselves signal a
return to steady economic growth. Disagreeing with Åslund over the role of loose monetary policy in
fostering the region’s economic problems, he outlines a number of competitiveness problems that
remain to be addressed in the 10 new EU member states of CEE, along with improvements in framework conditions supporting future macroeconomic growth
Avoiding a new European divide. Bruegel Policy Brief 2008/10, December 2008
No full textThe financial crisis, which is now hitting the new member states severely, highlights the shortcomings of the existing institutional architecture in Europe. Current strains reflect a revaluation of risks but they also result from policy mistakes. For many years, growth in the new member states has relied on massive inflows of foreign capital that are now being called into question. Some of the non euro-area new member states suffer from serious vulnerabilities, to which policy has been slow to respond. Crisis management in the euro area has also had the unintended consequence of putting non euro-area new member states at a disadvantage. These are unhealthy developments and without decisive action, a new political and economic divide within Europe may emerge
Fiscal federalism in crisis: lessons for Europe from the US. Bruegel Policy Contribution 2010/07, July 2010
No full textDrawing comparisons between the fiscal situation in the US and the European Union, Bruegel Research Fellow Zsolt Darvas answers three questions in this Policy Contribution- Why has the euro been hit so hard? How would a more federal European fiscal union closer to the US model have helped? How do the euro area’s fiscal architecture reform plans stand up in light of the US example? The author analyses why current fiscal reform proposals if implemented will result in improvements but implementation could be deficient or lack credibility and can lead to disputes and carry political risk
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