This archive contains all documents published by cep over the last few years:
cepAdhoc: Incisive comment on current EU policy issues.
cepPolicyBrief: Concise 4-page reviews of EU proposals (Regulations, Directives, Green Papers, White Papers, Communications) – including a brief summary and economic and legal assessments.
cepInput: Impulse to current discussions of EU policies.
cepStudy: Comprehensive examination of EU policy proposals affecting the economy.
The EU Heads of State and Government (apart from Great Britain and the Czech Republic) entered into an agreement to improve the budgetary discipline of the Contracting Parties. The Contracting Parties undertake to transpose a debt brake into their national legal systems and to facilitate the imposition of sanctions in the deficit procedure.
On the one hand, the Commission wishes conduct enhanced surveillance of euro countries, which might need to request financial assistance in future. On the other hand, the Commission wishes to see the tasks assigned by the bail-out package enshrined in secondary EU legislation.
The Commission presents three options for the implementation of Eurobonds and puts up for discussion the related pros and cons. With regard to the pros it mentions in particular the alleviation of the current debt crisis, the stabilisation of the banking system and the increased liquidity of the government bonds market. With regard to the cons it mentions the reduced incentives for budgetary discipline. For instance, Member States can run up debts at the expense of the budgetary discipline of other Member States, without this having an affect on their financing costs.
As a reaction to serious tension on the financial market, on 21. July 2011, the heads of states and governments of the euro zone decided to amend the existing EFSF. The objective of the amendments is to increase the operative volume of the EFSF and to provide it with new legal instruments.
The main causes of the Euro crisis lie in the irresponsible indebtedness policy of the affected Euro states and in the real economy structures which threaten not only the creditworthiness of those states but of entire economies.
The “European Semester“ serves to contribute to the yearly ex-ante economic policy coordination of Member States. On the basis of National Reform Programmes, the EU issues country-specific recommendations for action. The implementation of these measures is to eliminate macro-economic imbalances and to serve the targets of the “Europe 2020” strategy.
The euro zone currently finds itself in an existential crisis. The increasingly dramatic rescue measures that have been taken to save over-indebted euro states from insolvency have failed, without exception, to calm the situation. There are growing concerns about further countries being swept aside with it. Therefore, the cep has developed a fact-based Default Index reflecting the erosion of creditworthiness in euro zone member states.