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EEAG European Economic Advisory Group at CESifo

The EEAG Report on the European Economy 2011

Image The EEAG Report on the European Economy 2011

On 22 February 2011, the European Economic Advisory Group at CESifo presented its eleventh report ”Report on the European Economy” at a press conference in Brussels and at press conferences in major European cities.

Complete issue

  1. EEAG Report on the European Economy 2011

    teaserImage 22.02.2011: Foreword, Executive Summary, Chapter 1: Macroeconomic Outlook, Chapter 2: A New Crisis Mechanism for the Euro Area, Chapter 3: Greece, Chapter 4: Spain, Chapter 5: Taxation and Regulation of the Financial Sector, Authors Details

  1. Corsetti, Giancarlo, Michael P. Devereux, John Hassler, Gilles Saint-Paul, Hans-Werner Sinn, Jan-Egbert Sturm und Xavier Vives, "Foreword", EEAG Report on the European Economy 2011, 2011, 2 | Details | PDF Download

  2. Corsetti, Giancarlo, Michael P. Devereux, John Hassler, Gilles Saint-Paul, Hans-Werner Sinn, Jan-Egbert Sturm und Xavier Vives, "Summary", EEAG Report on the European Economy 2011, 2011, 9-16 | Details | PDF Download

Chapters

  1. Chapter 1: The Macroeconomic Outlook

    The structural problems brought to light by the financial crisis have largely remained in place or shifted from the private (banking) sector to the public sector. In the United States, despite increased saving, household debt remains high; their wealth position has deteriorated substantially due to the bursting of the house price bubble. The real estate sector has shrunk, and the financial sector has still not fully recovered. Details

  2. Chapter 2: A New Crisis Mechanism for the Euro Area

    The European debt crisis followed the US financial crisis with a delay of one and a half years. While its first signs were visible in November and December of 2009 when the rating agency Fitch downgraded Ireland and Greece, it culminated on 28 April 2010 when the intra-day interest rate for two-year Greek government bonds peaked at 38 percent. Since then capital markets have been extremely unstable, showing signs of distrust in the creditworthiness of the GIPS countries: Greece, Ireland, Portugal and Spain. The European Union reacted by preparing voluminous rescue plans that, at this writing (January 2011), have been resorted to by Greece and Ireland. Details

  3. Chapter 3: Greece

    As most European countries were coming out of recession at the end of 2009, Greece was entering a tumultuous period. The announcement of the newly elected Greek government in October 2009 that the projected budget deficit for 2009 would be 12.7 percent of GDP2 (rather than the 5.1 percent projection that appeared in the 2009 Spring Commission forecast), was initially met with shock and opprobrium in Brussels and other euro-area capitals. The initial reaction of policymakers across the European Union was that the risk of contagion was minimal, and that the right way to deal with the situation was to let Greece “swing in the wind”. Details

  4. Chapter 4: Spain

    Spain has suffered a lot from the current crisis and is the first large economy that may find itself in need of fiscal rescue. If this happens it may prove quite damaging to the euro. Yet, since the mid-1990s, Spain was a champion of growth and fiscal stability; its unemployment had fallen rapidly to the levels that prevailed in the rest of the European Union. This chapter discusses the reasons why such a virtuous initial situation deteriorated so sharply since the start of the crisis. Was this just bad luck or were the booming years just a mirage? Details

  5. Chapter 5: Taxation and Regulation of the Financial Sector

    Since the beginning of the financial crisis numerous proposals have been made for the reform of public policies towards banks and other financial companies. Many individual governments have already taken action, and several official international bodies have also been active in considering reform. Reform proposals have taken two forms. One form is for new, or amended, regulations on banks and financial companies. A second is for new taxes on banks and other financial companies. Details

  6. Authors: The Members of the European Economic Advisory Group at CESifo

    Authors of the Report on the European Economy 2011 Details


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