EU regional development

Convergence or not? Arrow

Economic convergence is one of the main objectives of the European Union. So far, it’s only been moderately successful. more

Tobias Hentze and Sanrda Parthie on EUobserver
Tobias Hentze and Sandra Parthie on EUobserver

Refugees will contribute to growth in Germany Arrow

Germany will benefit in the long term from accommodating and preparing refugees for the job market, argue Tobias Hentze and Sandra Parthie in a guest commentary for EUobserver. more

Gross domestic product

The capital city effect Arrow

There is a wide prosperity gap between London and the rest of the UK. The situation is the same in many other EU Member States – with one exception.  more

Markus Demary

Italy's Banking Crisis – Creditor Bail-in Is No PanaceaArrow

Italy’s banks are struggling under high amounts of non-performing loans on their balance sheets and the Italian government is fighting with the European Commission over putting 50 billion Euro of problem loans into a bad bank, which needs funding of 10 billion Euro with public money. Calculations of the Cologne Institute for Economic Research reveal that banks need to be recapitalised with additional 21.7 billion Euro under this plan. more

Italy's banking sector problems Choice between one of two evils
Markus Demary

Italy's Banking Crisis – Creditor Bail-in Is No Panacea Arrow

Italy’s banks are struggling under high amounts of non-performing loans on their balance sheets and the Italian government is fighting with the European Commission over putting 50 billion Euro of problem loans into a bad bank, which needs funding of 10 billion Euro with public money. Calculations of the Cologne Institute for Economic Research reveal that banks need to be recapitalised with additional 21.7 billion Euro under this plan.  more

ECB’s interest rate decision
ECB's interest rate decision

Europe needs higher interest rates Arrow

The council of the European Central Bank (ECB) has decided to maintain a negative interest rate for banks at -0.4 percent. Low or negative interest rates, however, have not fostered economic growth yet. Instead, they have reduced banks’ profits, why bank lending to companies is still weak. Thus, the time has come for an interest rate hike.  more

Bußgelder für Spanien und Portugal
Financial Sanctions

EU must take gloves off Arrow

For the first time in the history of the Stability and Growth Pact, the EU could impose sanctions for excessive government deficits. Targeted by sanctions would be Spain and Portugal. And rightly so, because compared to France and Italy, the budget deficits of the Iberians are significantly more severe. This does not allow tinkering with the fiscal rules anymore.  more

TTIP

Paradoxical protest Arrow

Despite the major protest movement against the transatlantic free trade agreement, the majority of TTIP sceptics still speak out in favour of free trade and globalisation. So, what are TTIP opponents actually protesting, if, at the same time, they endorse unlimited international trade? In reality, the defensive attitude towards TTIP feeds on issues that have little to do with the agreement itself. more

Michael Voigtländer in Market Insights and Updates
Michael Voigtländer in Market Insights and Updates

Macro prudential instruments for the German mortgage market Arrow

It is without question that regulations are necessary in the banking system, but regulators should be more patient and analyse the outcome of regulations in greater detail, says the IW Institute's real estate expert Michael Voigtländer in a guest commentary for Market Insights & Updates. more