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You searched for: Content Type Policy Brief Remove constraint Content Type: Policy Brief Publishing Institution Finnish Institute of International Affairs Remove constraint Publishing Institution: Finnish Institute of International Affairs Publication Year within 10 Years Remove constraint Publication Year: within 10 Years Topic Debt Remove constraint Topic: Debt
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  • Author: Teija Tiilikainen
  • Publication Date: 09-2013
  • Content Type: Policy Brief
  • Institution: Finnish Institute of International Affairs
  • Abstract: Safeguarding the EU's unity in the long-term development of the EMU is currently one of the major challenges for the Union. The de facto adjustments made to the EU's economic and fiscal powers due to the economic and financial crisis, including the completion of the Banking Union, create pressures to address the treaty-based division of powers and to strengthen the democratic control of the powers executed by the Union. The need to back the EU's macroeconomic goals with fiscal instruments has been made evident by the economic crisis; the position of these instruments outside the common budget might become increasingly controversial. A further increase in economic solidarity (jointly guaranteed debt, taxation power) might jeopardize the EU's stability and democratic legitimacy if carried out in the current political and institutional framework. A system of constitutional and fiscal federalism would produce a more stable outcome, but would require major changes in the EU's democratic system and system of policy implementation, in its external policies and the way its constitutional powers are arranged.
  • Topic: Debt, Economics, Regional Cooperation, Monetary Policy, Financial Crisis
  • Political Geography: Europe
  • Author: Juha Jokela
  • Publication Date: 10-2013
  • Content Type: Policy Brief
  • Institution: Finnish Institute of International Affairs
  • Abstract: Policymakers, observers and the media have referred to a vast number of divisions in crisis-torn Europe. The EU is divided between north and south or creditors and debtors. Some have emphasised the emerged division between anti-EU and pro- EU forces. Significantly, these divisions are also manifested within the eurozone, in the form of the current differences between the French and German views, and the increasing role of the populist movements in many euro countries. Yet others have highlighted the boundary between the eurozone and the rest of the EU, and suggested that the euro countries now form the core of the Union. Relatedly, some of the non-euro members are distancing themselves from the EU – most notably the UK – while many others aim to secure their influence in the Union, even if euro membership may have been put on the back burner.
  • Topic: Debt, Economics, Monetary Policy, Financial Crisis
  • Political Geography: United Kingdom, Europe, Germany
  • Author: Samu Kurri
  • Publication Date: 11-2013
  • Content Type: Policy Brief
  • Institution: Finnish Institute of International Affairs
  • Abstract: The financial and economic crisis has reinforced the two-layer economic integration structure in the EU. Many of the new rules and structures created during the crisis have focused on a solution to the euro crisis and are thus euro area-specific. There is little evidence, however, that the situation would have dramatically changed compared to the Maastricht EMU. All of the changes are still in line with the basic idea that all EU countries will join the euro when they are ready to do so. One of the key questions in the near future is likely to centre on the contours of the euro area specific decision-making, its relationship to the EU as a whole, and its institutions and procedures. Even if the Euro group remains 'formally informal', it has managed to transform itself into a de facto institution within the EU, and its role and weight is likely to increase rather than decrease.
  • Topic: Debt, Economics, Monetary Policy, Financial Crisis, Reform
  • Political Geography: Europe
  • Author: Erik Jones
  • Publication Date: 11-2012
  • Content Type: Policy Brief
  • Institution: Finnish Institute of International Affairs
  • Abstract: The European sovereign debt crisis is the result of capital flows across the single market. The danger that such capital flows could unleash market speculation was known from the start; indeed, the single currency was created to remove the threat of exchange rate instability. The problem is that the architects of the single currency did not consider the impact of capital market integration on the banking sector or on the relationship between banks and national governments. Once markets lost confidence in the security of their cross-border investments, investors began to pull back their capital and the internal market for financial services started to disintegrate. The creation of a banking union is part of the solution. However, the euro area also needs a common 'risk-free' asset to use as a safe haven in times of crisis.
  • Topic: Debt, Economics, Markets, Financial Crisis
  • Political Geography: Europe
  • Author: Teemu Sinkkonen
  • Publication Date: 11-2011
  • Content Type: Policy Brief
  • Institution: Finnish Institute of International Affairs
  • Abstract: The electoral defeat suffered by the ruling Socialist Party (Partido Socialista Obrero Español, PSOE) in the municipal elections and the prolonged financial crisis has forced Prime Minister Zapatero to call an early general election on 20 November. The Conservative People's Party (Partido Popular, PP) is ahead in the polls by a clear margin and is likely to gain an absolute majority in the parliament. The economic outlook for Spain looks bleak, which means that the new government will have to create new jobs quickly and push through harsh and unpopular reforms, particularly regarding the fiscal and administrative structures. The Indignados protest movement is gaining support, and looks set to challenge the legitimacy of the system and force the future government to produce speedy results. Spain is expected to enhance its role in international politics through pragmatic bilateral relations. In particular, relations with the US seem to be warming up, while Spain can turn to the UK and Poland in the EU for companionship
  • Topic: Debt, Democratization, Economics, Financial Crisis
  • Political Geography: United States, United Kingdom, Europe, Spain