An evaluation of IMF surveillance of the euro area

The euro-area crisis has exposed deep deficiencies in the governance of European Economic and Monetary Union. However, crisis prevention in, and surveillance of, the euro area are not only the responsibility of European authorities. As members of the International Monetary Fund, all euro-areacountries are also subject to regular bilateral IMF surveillance. The currency union as a whole is also subject to regular IMF surveillance.This report analyses the IMFâ??s surveillance of the euro area. We find that it suffered from severe shortcomings in the run-up to the financial crisis, but after the start of the crisis in 2008, IMF surveillance of the euro area greatly improved, with the IMF correctly proposing measures to counter depression risks and warning about banking sector problems. By the time the sovereign-debt crisis hit the currency union in early 2010, the IMF was ready to play aninfluential role. The slow European response meant this was indispensable.

Leaving the EU may entail a loss of sovereignty for the UK

There is little doubt that in the case of a Brexit, the UK would still need to trade with other European single market countries, considering that about half of its trade in goods and in services is with them. Britain could therefore find itself in a similar position to countries signing up to the European Free Trade Agreement – being compelled to abide by the rules of the single market, but having no longer a say in how these rules are drafted. André Sapir and Guntram Wolff point at what they define as the UK’s ‘sovereignty myth’: by opting out of the union, the UK could in fact find itself with less sovereignty, not more

Experimental investigation of a cascaded organic Rankine cycle plant for the utilization of waste heat at high and low temperature levels

A power plant with two cascaded organic Rankine cycles (CORC) to exploit waste heat from a 800 kWe combined heat and power plant, fueled by biogas, is designed and tested. Heat from the exhaust gas is utilized with a high temperature organic Rankine cycle (HT-ORC), where toluene is employed as a working fluid. The heat discharged from the HT-ORC as well as heat from the engine coolant and additional heat from the exhaust gas is supplied to a low temperature ORC (LT-ORC) with the working fluid Solkatherm SES36. The design of the CORC and the selection of working fluids is presented, aiming at a maximum plant efficiency, but also complying with environmental, safety and practical issues. Furthermore, plant components and construction details are described. After manufacturing, initial tests are carried out, obtaining thermodynamic conditions that are close to the design of the HT-ORC, where a maximum electrical turbo-generator output of 17.5 kW is measured. The cascading of the low temperature heat sources and the transfer to the LT-ORC is shown as well as the basic operation of the LT-ORC. However, several problems occurred, such as a turbo-generator damage in the HT-ORC, a too high condensation pressure and a low working fluid mass flow rate in the LT-ORC, which are discussed together with proposed optimization measures

Multi-Sided Boundary Labeling

In the Boundary Labeling problem, we are given a set of $n$ points, referred to as sites, inside an axis-parallel rectangle $R$, and a set of $n$ pairwise disjoint rectangular labels that are attached to $R$ from the outside. The task is to connect the sites to the labels by non-intersecting rectilinear paths, so-called leaders, with at most one bend. In this paper, we study the Multi-Sided Boundary Labeling problem, with labels lying on at least two sides of the enclosing rectangle. We present a polynomial-time algorithm that computes a crossing-free leader layout if one exists. So far, such an algorithm has only been known for the cases in which labels lie on one side or on two opposite sides of $R$ (here a crossing-free solution always exists). The case where labels may lie on adjacent sides is more difficult. We present efficient algorithms for testing the existence of a crossing-free leader layout that labels all sites and also for maximizing the number of labeled sites in a crossing-free leader layout. For two-sided boundary labeling with adjacent sides, we further show how to minimize the total leader length in a crossing-free layout

The Great Transformation: Memo to the Incoming EU Presidents. Bruegel Policy Brief 2014/04, July 2014

The European Union’s leadership spent the last five years fighting an acute and existential crisis. The next five years, under your leadership, will be no less difficult. You will have to tackle difficult economic and institutional questions while being alert to the possibility of a new crisis. You face three central challenges: (1) The feeble economic situation prevents job creation and hobbles attempts to reduce public and private debt; (2) EU institutions and the EU budget need reform and you will have to deal with pressing external matters, including neighbourhood policy and the EU’s position in the world; (3) You will have to prepare and face up to the need for treaty change to put monetary union on a more stable footing, to review the EU’s competences and to re-adjust the relationship between the euro area and the EU, and the United Kingdom in particular

One market, two monies: the European Union and the United Kingdom. Bruegel Policy Brief Issue 2016/01 January 2016

Access to the single market is one of the core benefits of the United Kingdom’s membership of the European Union. A vote to leave the EU would trigger difficult negotiations on continued access to that market. However, the single market is not static. One of the drivers of change is the necessary reforms to strengthen the euro. Such reforms would not only affect the euro’s fiscal and political governance. They would also have an impact on the single market, in particular in the areas of banking, capital markets and labour markets. This is bound to affect the UK, whether it remains in the EU or not

Euro-area governance: what to reform and how to do it. Bruegel Policy Brief 2015/01 February 2015

The Issue Reform of the governance of the euro area is being held back by disagreement on what is at the root of the euro area’s woes. Pre-crisis, the euro area suffered from the built-up of financial imbalances, price and wage divergence and an insufficient focus on debt sustainability. During the crisis, the main problems were slow resolution of banking problems, an inadequate fiscal policy stance in 2011-13 for the area as a whole, insufficient domestic demand in surplus countries and slow progress with structural reforms to overcome past divergences. Policy Challenge Euro-area governance needs to move beyond the improvements brought about by banking union and should establish institutions to prevent divergences of wages from productivity. We propose the creation of a European Competitiveness Council composed of national competitiveness councils, and the creation of a Eurosystem of Fiscal Policy (EFP) with two goals: fiscal debt sustainability and an adequate area-wide fiscal position. The EFP should have the right in exceptional circumstances to declare national deficits unlawful and to be able to force parliaments to borrow more so that the euro-area fiscal stance is appropriate. A euro-area chamber of the European Parliament would have to approve such decisions. No additional risk-sharing would be introduced. In the short term, domestic demand needs to be increased in surplus countries, while in deficit countries, structural reform needs to reduce past divergences

Europe in a new world order. Bruegel Policy Brief ISSUE 2 | FEBRUARY 2017

In this paper the authors explore what the EU’s strategic reaction should be to US diminishing giant policies, and the EU’s role in a world of declining hegemony and shifting balances