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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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The Eurozone may have exited recession, but the crisis is far from over.

Recent figures from Eurostat show that the Eurozone emerged from its recession in the second quarter of 2013. Harald Sander argues that while there are some ‘green shoots’ of recovery, the Eurozone crisis is far from over. He notes that there are still a number of key challenges to be overcome, with Eurozone unemployment levels and debt to GDP ratios […]

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Brussels blog round-up for 29 June – 5 July: Croatia joins the EU, trouble in Portugal and France’s ‘restive left’.

Chris Gilson takes a look at the week in Brussels blogging.  The EU centre and the crisis  On Monday, the Portuguese Finance Minister, Vitor Gaspar, resigned, to the surprise of many – though Open Europe says that the recent signals showing his resignation was imminent had been fairly plain. Lost in EUrope says that the resignation is part of the eurozone’s […]

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