The return of fiscal policy and the euro area fiscal rule

The text describes the theoretical developments of the assignment rules regarding fiscal and monetary policies and the respective roles in macroeconomics stabilisation. Monetary policy emerged as the dominant policy, reducing the active macro role of fiscal policy to taking care of debt sustainability. This consensus started to change, and a new view has appeared, giving a more active role to fiscal policy. The article concludes with a brief analysis of fiscal rules, followed by a discussion about the European Union fiscal framework, and its necessary revision.info:eu-repo/semantics/publishedVersio

Banking Union : a ten-year journey

This paper is part of the Banking Supervision Policy Working Paper Series in the context of the SSM-EUI partnership on SSM Banking Supervision Learning Services.The Single Supervisory Mechanism of the European Banking Union (EBU) is a significant achievement in the long journey of European integration. However, challenges persist in the pillars of bank resolution and the absence of a common European Deposit Insurance Scheme (EDIS). This paper explores the theoretical underpinnings of the European banking integration, analyses the impact of the financial crises that spurred its development, and the historical reasons and shortcomings posed by the strict bail-in requirements stated in the Bank Recovery and Resolution Directive (BRRD). It also addresses concerns surrounding the full implementation of an EDIS, advocating for targeted reforms to overcome existing gaps and enhance European banking integration

Moedas digitais de bancos centrais

Conferência Proferida a convite do Prof. doutor António Duarte SantosHá muitos anos que vivemos num contexto de moeda digital dominante. Os depósitos bancários, que são moeda digital, constituem o principal componente (85.4%) do agregado monetário M3. Fazemos electronicamente pagamentos e transferências com cartões ou na Net. Notas e moedas são uma parte diminuta da massa monetária

Speech [by Vítor Constâncio, Vice President, European Central Bank]

This contribution was delivered on the occasion of the EUI State of the Union in Florence on 9 May 201

Fiscal and financial conditions for a stronger euro area

The euro is irreversible but it needs reform to address well-known design deficiencies and also new challenges. Although progress has been made, further steps are needed, the most important of which are: revision of the fiscal rules, establishing a central stabilisation capacity, and completing the banking union (especially a deposit insurance, a capital market union based around a common safe asset, and improved macroprudential policy). This article sets out the necessary reforms in these areas in detail

The eurozone crisis and EU institutions : what is the optimal design?

This contribution was delivered on the occasion of the EUI State of the Union in Florence on 9 May 201

Macroprudential policy at the ECB: Institutional framework, strategy, analytical tools and policies

This occasional paper describes how the financial stability and macroprudential policy functions are organised at the ECB. Financial stability has been a key policy function of the ECB since its inception. Macroprudential policy tasks were later conferred on the ECB by the Single Supervisory Mechanism (SSM) Regulation. The paper describes the ECB's macroprudential governance framework in the new institutional set-up. After reviewing the concept and origins of systemic risk, it reflects on the emergence of macroprudential policy in the aftermath of the financial crisis, its objectives and instruments, as well as specific aspects of this policy area in a monetary union such as the euro area. The ECB's responsibilities required new tools to be developed to measure systemic risk at financial institution, country and system-wide level. The paper discusses selected analytical tools supporting financial stability surveillance and assessment work, as well as macroprudential policy analysis at the ECB. The tools are grouped into three broad areas: (i) methods to gauge the state of financial instability or prospects of near-term systemic stress, (ii) measures to capture the build-up of systemic risk focused on country-level financial cycle measurement and early warning methods, and (iii) the ECB stress testing framework for macroprudential purposes