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IMF: More fiscal integration to boost euro area resilience
Deeper fiscal integration in the euro area can correct weaknesses in the system's architecture, make the area more resilient to future crises, and provide long-term credibility to crisis-response measures already adopted, argues a new paper by IMF staff.
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ECON Committee: Banking Union tops agenda in discussion with Draghi
The practical details of setting up a single bank resolution system and fund, the upcoming bank balance sheet health checks and next steps for Greece were the key issues ECON Committee MEPs raised with ECB President Draghi.
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ECB/Mersch: Recent policy decisions regarding the Banking Union
Mersch elaborated on the recent policy decisions regarding the development of the Banking Union and their impact on the ECB as a supervisory authority.
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ESRB ASC: The consequences of the SSM for Europe's macro-prudential policy framework
This report argues for a centralised model of macro-prudential policy within the SSM. The ECB would set the framework and apply the necessary tools, in cooperation with national authorities and to the extent those tools are provided in EU law, mainly the CRD IV.
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AFME/Wymeersch: SSM to oversimplify EU prudential regulation
Wymeersch warned that the SSM regulation could have unintended consequences.
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Introductory statement by ECB/Draghi at the ECON Committee hearing
Draghi gave a review of recent economic and monetary developments in the euro area, and then addressed the two topics selected for discussion: the impact of the ECB's non-standard measures; and the new tasks of the ECB in the reformed EMU architecture.
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Ansgar Belke/IZA Bonn: Non-standard monetary policy measures – Magic wand or tiger by the tail?
This briefing paper, prepared for the ECON Committee, briefly assesses the effectiveness of different non-standard monetary policy tools in the euro area. Its main focus is on the OMT programme, praised by some as a "magic wand".
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CEPR/de la Dehesa: Non-standard and unconventional monetary policy measures
De la Dehesa argues that big recessions or depressions cannot be dealt with using standard monetary policy tools. The ECB's non-standard monetary policy measures - SMP, LTRO and "unlimited" OMT and "forward guidance" on interest rates - have been instrumental in avoiding a euro area break up.
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CEPR, Eijffinger et al: The various roles of the ECB in the new EMU architecture
Although the ECB is well-suited to its supervisory role, risks related to conflicts of interest, moral hazard or time inconsistencies may arise, in particular during deep economic-financial crises.
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ECON Committee: Klaus Regling quizzed about wider lending role for European Stability Mechanism
The ESM's current legal set-up would not allow it to become a "backstop" lender to a newly-created EU bank resolution fund, said Regling, although he conceded that he was open to considering other possible legal interpretations which could justify this role for the ESM.
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ECON Committee: Alternatives to austerity would be even more painful, warns ESM chief Klaus Regling
Economic growth is slowly returning to Europe thanks to the EU's response to the crisis, yet countries still have much to do to improve their competitiveness, said Regling.
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Bloomberg: EU mulls €50 billion fund to aid non-euro banks
The EU is weighing whether a €50 billion rescue fund can be turned into a bank backstop for Member States outside the single-currency bloc, two EU officials said.
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Huertas & Nieto: A game-changer - The EU Banking Recovery and Resolution Directive
This column comments on the interaction of the bail-in tool with the proposed resolution funds, and on the effects of the carve-out approach to bail-in.
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Bundesbank/Dombret: Resilient banks – Essential building blocks of a stable financial system
Dombret said that in order to ensure financial stability, resilient banks were required. He highlighted the need to move faster with regard to implementing new rules and standards.
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Bundesbank/Dombret: Five years after Lehman
"We should see the financial system as what it is: a service provider for the real economy. Subscribing to this notion of finance will probably be the most important step toward financial stability."
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Nicolas Véron: Banking nationalism and the European crisis
In Véron's opinion, banking nationalism has been generally under-recognised, both as a driver of European financial fragility in the run-up to the crisis, and as an obstacle to crisis resolution since the crisis started.
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