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    The proposed EU Financial Transactions Tax is both illogical and likely to be economically damaging

The proposed EU Financial Transactions Tax is both illogical and likely to be economically damaging

In 2011, the European Commission proposed a Financial Transactions Tax (FTT) to raise revenue from the financial sectors in EU countries following the financial crisis. To date, however, only 11 EU states have so far agreed to implement such a tax. John Grahl and Photis Lysandrou write that while they broadly agree with the objectives behind the FTT, the […]

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    The lack of monetary sovereignty is not the reason Eurozone countries struggled during the crisis

The lack of monetary sovereignty is not the reason Eurozone countries struggled during the crisis

One of the most widespread arguments about the Eurozone crisis is that countries such as Greece, Spain and Italy have been hamstrung by their lack of monetary sovereignty and the ability to devalue their own currency. Deborah Mabbett and Waltraud Schelkle assess this perspective by comparing the experiences of Greece with Hungary, which does not use the euro, and […]

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    The ECB should focus on the threat of deflation rather than maintaining austerity

The ECB should focus on the threat of deflation rather than maintaining austerity

The European Central Bank will hold its latest policy meeting today. Ahead of the meeting, David Woodruff writes that while growth has resumed in the Eurozone, there are still serious problems across the single currency area, with unemployment at exceptionally high levels in several countries. He argues that the ECB’s primary focus should be on preventing deflation, and that […]

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    What has been agreed on banking union risks reigniting, rather than resolving the crisis

What has been agreed on banking union risks reigniting, rather than resolving the crisis

In December 2013 EU finance ministers negotiated an agreement aimed at establishing a banking union, with further talks between the European Parliament and the Member States ending in an agreement last week. Iain Begg provides a detailed overview of the main objectives of banking union and what has been agreed so far. He argues that while European leaders have […]

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Why the European Court of Justice should reject the German Constitutional Court’s ruling on Outright Monetary Transactions

Despite having a positive effect on the economic situation within the Eurozone, the European Central Bank’s Outright Monetary Transactions (OMT) program has proved controversial, with the German Constitutional Court in Karlsruhe recently deeming it illegal under EU law. Paul De Grauwe argues that the ruling reflects a serious misunderstanding of central banking on the part of the German Court, and […]

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Germany’s drive for Eurozone political union underlines the inadequacy of culture-based conceptions of integration

Throughout the economic and financial crisis, Germany has stood by the euro, contributing the most to the EU’s bailout programmes. At the same time, the country has continued its gradual rise to power. Anthony Salamone argues that Germany’s insistence on providing financial assistance on condition of political union in the Eurozone illustrates that European integration remains a question of states’ […]

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