Action Policy Digest – June 2017

Autore :

Data: 12-06-2017

Tipo: Other

Tematica: Action Institute

Organized as a monthly newsletter, it presents an overview of the current international policy debate. You find below a selection of the best ideas from the most influential think tanks, structured in four areas: (i) Finance, (ii) Innovation and Development, (iii) European Affairs and (iv) Social Policy.

“New market conduct rules for financial intermediaries: Will complexity bring transparency?” (CEPS). The financial crisis led to a raft of new or updated EU conduct rules to ensure the orderly functioning of markets and market operators. This Policy Brief reviews the core measure, known as MiFID II, which is now in the implementation phase.

“The impact of risk-based capital requirements on corporate lending: Evidence from Europe” (VOX).Bank risk-weighted assets differ significantly across banks. Using a unique database covering Europe’s top 50 banking groups, this column argues that national segmentations explain a significant (albeit decreasing) share of this variability.

“Is the recent increase in long-term interest rates a threat to euro-area recovery?” (BRUEGEL). After reaching historically low levels, European long-term sovereign yields experienced a notable rise at the end of 2016 and beginning of 2017. This paper discusses the factors behind it and the potential implications for the euro-area economy, public finances and ECB policy.

“The determinants of sovereign bond yields: Fiscal versus external imbalances” (VOX). In the aftermath of the Global Crisis, sovereign yield differentials have increasingly widened among European developed countries. Financial markets seem to discriminate among peripheral economies requiring a higher risk premium than is justified by fiscal factors only.


“The contribution G20 governments can make to support the circular economy” (CEPS). In recent years the circular economy has received increasing attention worldwide due to, inter alia, the recognition that security of supply of resources and environmental sustainability are crucial for the prosperity of countries and businesses.

“Horizon 2020 would need €62.4B more to fund all research rated as top quality” (SCIENCE BUSINESS). New analysis finds the extremely competitive research programme is rejecting more and more great proposals. The success rate is down from 18.5% in FP7 to a lowly 11.6% now.


“Try again to complete the Banking Union!” (CEPS). The author acknowledges the important steps that have been taken towards centralisation of bank supervision alongside bail-in rules. But he argues that the new bail-in rules have not been fully applied and that banks are too much exposed to their own sovereign.

“Financial integration in the Eurozone should not be a tough sell” (VOX). Much progress has been made in recent years to improve the financial integration of the Eurozone. This column argues that while banking union promotes stability, markets remain fragmented and consumers aren’t yet fully enjoying the fruits of integration.

“We need a European Monetary Fund, but how should it work?” (BRUEGEL). Many voices are calling for the ESM to be developed into a fully-fledged European Monetary Fund. But what changes would this entail, and how could the new institution be governed? The authors see both need and hope for change.

“Fiscal Risk Sharing and Resilience to Shocks: Lessons for the euro area from the US” (CEPS). The present paper offers a timely contribution to the important debate on the design of a possible fiscal stabilisation function for the euro area by assessing the stabilising effects and the nature of the US federal tax-transfer system to shocks.


“The economic consequences of family policies” (VOX). Family-oriented policies are in place in all high-income countries. While there is no clear consensus, a general theme is that policies that make it easier to be a working mother seem to have better labour market outcomes than extending parental leave.

“Europe’s forgotten refugee crisis” (CER).The EU is far from having solved the problems that led to the refugee crisis. It needs to make its asylum system work and do more to send irregular migrants back.

“Great Divergences: The growing dispersion of wages and productivity in OECD countries” (VOX). Wage inequalities are growing between firms, even those operating in the same sector – and they are linked to growing differences between high and low productivity firms. Both globalisation and technological progress – as do policies and institutions such as minimum wages, employment protection legislation, unions, and processes of wage-setting.


Let me remind you that credit is the lifeblood of business, the lifeblood of prices and jobs.

Herbert Hoover […]


Good health is essential to social and economical development and it empowers all of the public sectors.

World Health Organization […]


Innovation is the specific instrument of entrepreneurship. The act that endows resources with a new capacity to create wealth.

Peter Drucker […]

Human Capital

Talent is a source from which water flows constantly renewed. But this source loses its value unless it is properly used.

Ludwig Wittgenstein […]