An action plan for the European leaders

At the extraordinary EU Council of 21 July European leaders have to accomplish a triple-mission. First, they should pave the way to restoring solvency in Greece by initiating debt reduction. Softening the Greek debt burden implies i) reducing the interest rate on official lending, ii) requesting from the EFSF support for an immediate bond buy-back programme, and iii) asking the ESRB for an immediate evaluation of the risks to financial stability involved in a future restructuring of the sovereign debts in the euro area. Second, they should promote immediate growth-enhancing measures to be financed through unused EU structural funds and EIB loans (â?¬16bn). The available funds shall be used to i) raise the quality of higher education, ii) finance wage subsidies in manufacturing and tourism so as to generate an internal devaluation at contained domestic-demand costs; and ii) create research laboratories (i.e. lighthouse innovation projects) that would support an upgrading of the Greek value chain. Third, they should address risks to financial stability in the euro zone by breaking the vicious circle between sovereign debt and banking risk. The EFSF should be able to guarantee national deposit insurance schemes; at the same time, the European Banking Authority should assume stronger supervisory powers. This is an immediate action plans but of course more ambitious reforms are necessary down the road.

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.

Social capital and rural innovation process. The evaluation of the measure 124 \u201cCooperation for Development of New Products, Processes and Technologies in the Agriculture, Food and Forestry Sector\u201d in the Umbria Region (Italy)

The most recent theories on innovation point out the role of social networks, demonstrating how knowledge is intertwined with network communities and social capital represents an essential factor to comprehend innovation. The social network dimension of the innovation process is also acknowledged in the actual definition of an agricultural innovation system (AIS). This study attempts to assess the role played by social capital in agricultural innovation projects co-financed by the Measure 124 of the Rural Development Program (2007-2013) of the Umbria Region (Italy), based on the analysis of 5 evaluation criteria (relevance, innovation, effectiveness, sustainability, and social capital) in relation to 8 selected projects. The obtained results confirm the validity of the proposed methodology both for the purpose of internal monitoring of the project and for the assessment of the measure on the basis of tangible and intangible factors, such as social capital

THE THREATS TO THE EUROPEAN UNION’S ECONOMIC SOVEREIGNTY Memo to the High Representative of the Union for Foreign Affairs and Security Policy. Bruegel Policy Brief

Economics used to play a limited role in foreign policy, which was about wars, conflicts and human disasters – and how to avoid them. But neither China nor the United States now separates economics from geopolitics. The competition between them is simultaneously an economic competition and a security competition. This is a threat to the multilateral system the European Union has relied on for nearly seven decades and to the EU’s separation of external economic relationships from geopolitics. You and your Commission colleagues must redefine for the EU its concept of economic sovereignty and the instruments it needs to defend and promote it

The messy rebuilding of Europe. Bruegel Policy Brief 2012/01, March 2012

The euro crisis and subsequent policy responses have challenged the assumptions underpinning the governance of the euro area, and the relationship between the European Union’s euro- and non-euro countries. The euro policy regime has become increasingly complex and difficult to manage, raising the question of the accountability of decision making to citizens. Complexity also threatens to create frustration for euro area members, which fear that initiatives to strengthen the euro will be hindered, and for non-euro members, which fear that they will be de-facto deprived of their say in decisions of major relevance to them. It is too early to determine if and how policy integration within the euro area will develop beyond its current limited monetary and budgetary remit. Alternative scenarios can be envisaged, from the building of a coherent euro area within the EU, to a fragmentation of the financial market and a generalised ‘variable geometry’. Policy action should be based on the need to: make room for deeper integration within the euro area, beyond the limited remit envisaged in the Lisbon treaty preserve the integrity of the EU27 and its essential governance arrangements ensure equal treatment in the application of common rules ensure that candidates for euro-area membership have a voice in the definition of its rules balance the requirements of legal clarity, accountability and efficiency with the desirability of experimentation through variable geometry

A common behavior in the late X-ray afterglow of energetic GRB-SN systems

The possibility to divide GRBs in different subclasses allow to understand better the physics underlying their emission mechanisms and progenitors. The induced gravitational collapse scenario proposes a binary progenitor to explain the time-sequence in GRBs-SNe. We show the existence of a common behavior of the late decay of the X-ray afterglow emission of this subclass of GRBs, pointing to a common physical mechanism of their late emission, consistent with the IGC picture.Comment: 3 pages, to appear in the proceedings of the Gamma-Ray Burst Symposium 2012 - IAA-CSIC - Marbella, editors: Castro-Tirado, A. J., Gorosabel, J. and Park, I.

GRB 081024B and GRB 140402A: two additional short GRBs from binary neutron star mergers

Theoretical and observational evidences have been recently gained for a two-fold classification of short bursts: 1) short gamma-ray flashes (S-GRFs), with isotropic energy $E_{iso}<10^{52}$~erg and no BH formation, and 2) the authentic short gamma-ray bursts (S-GRBs), with isotropic energy $E_{iso}>10^{52}$~erg evidencing a BH formation in the binary neutron star merging process. The signature for the BH formation consists in the on-set of the high energy ($0.1$--$100$~GeV) emission, coeval to the prompt emission, in all S-GRBs. No GeV emission is expected nor observed in the S-GRFs. In this paper we present two additional S-GRBs, GRB 081024B and GRB 140402A, following the already identified S-GRBs, i.e., GRB 090227B, GRB 090510 and GRB 140619B. We also return on the absence of the GeV emission of the S-GRB 090227B, at an angle of $71^{\rm{o}}$ from the \textit{Fermi}-LAT boresight. All the correctly identified S-GRBs correlate to the high energy emission, implying no significant presence of beaming in the GeV emission. The existence of a common power-law behavior in the GeV luminosities, following the BH formation, when measured in the source rest-frame, points to a commonality in the mass and spin of the newly-formed BH in all S-GRBs.Comment: 16 pages, submitted to ApJ, second version addressing the comments by the refere