Retail and corporate banks have to cope with legacy issues that impede their efficiency and reactivity. In particular, different norms within groups are still used for accountancy, cost allocation systems and product hierarchies. Also, the share of IT spending used to maintain existing IT systems remains high. Yet, many of the banks’ activities are being rapidly digitalised, especially in consumer finance. The potential of data analytics is being gradually unleashed at different stages of the products. In that context, regulators should favour the digitalisation of banks while alleviating related risks. They should also build on this mutation to raise consumers’...
Carrera, Sergio; Den, Hertog; Núñez Ferrer, Jorge
This study offers a comparative assessment of the frameworks for governance and oversight of selected EU trust funds (EUTFs) and the Facility for Refugees in Turkey (FRT). It explores how these EUTFs and the FRT add to and ‘mix’ the instruments set up under the EU Multiannual Financial Framework. It addresses the issue of their added value in light of the EU Better Regulation guidelines, their impact on the role of the European Parliament as a budgetary authority and the right to good administration. The study recommends reducing the complexity of the EUTF and FRT governance frameworks, and strengthening their...
Rizos, Vasileios; Behrens, Arno; Drabik, Eleanor; Rinaldi, David; Tuokko, Katja
The circular economy is attracting significant interest worldwide, as evidenced by the numerous government strategies, business commitments and partnerships devoted to its development. At the EU level, the Action Plan for the Circular Economy and several other policy documents have demonstrated a strong commitment to move towards a low-carbon and circular economy. While the calls for a new economic model grow louder, it is clear that the transformation of markets and industries on a large scale will not be an easy achievement. It will require well-designed and ambitious policies to foster the transition as well as new business models.
Bank failures have multiple causes though they are typically precipitated by a rapidly unfolding funding crisis. The European Union’s new prudential liquidity requirements offer some safeguards against risky funding models, but will not prevent such scenarios. The speed of events seen in the 2017 resolution of a Spanish bank offers a number of lessons for the further strengthening of the resolution framework within the euro area, in particular in terms of inter-agency coordination, the use of payments moratoria and funding of the resolution process.
Egenhofer, Christian.; Drabik, Eleanor; Alessi, Monica; Rizos, Vasileios
The Ecodesign Directive (ED) provides consistent EU-wide rules for improving the
environmental performance of products, such as household appliances, information and
communication technologies or engineering. This report summarises the responses of 27
stakeholders who were interviewed to obtain their assessment of the implementation of the
ED, particularly the successes and shortcomings, the results and the processes and the
Directive’s contribution to encouraging the circular economy. The objective was to gather
the views of both EU-level and Member State experts and stakeholders on the following
To what extent has the Directive met its objectives?
What are the main obstacles in the implementation?
How does the ED interact...
Aydin, Mustafa; Triantaphyllou, Dimitrios
The Black Sea region is coming into its own - but it is a contested and sometimes dangerous neighbourhood. It has undergone countless political transformations over time. And now, once again, it is becoming the subject of an intense debate. This reflects the changing dynamics of the Black Sea countries and the complex realities of their politics and conflicts, economies and societies. Geography, the interests of others and the region’s relations with the rest of the world in large part explain its resurgence. Straddling Europe and Asia, the
Black Sea links north to south and east to west. Oil, gas, transport...
Mehrotra, Santosh; Raman, Ravi; Kumra, Neha; Kalaiyarasan, .; Röß, Daniela
India is among the countries with the lowest proportion of trained youth in the world. Even worse, vocational education in secondary schools has received very limited funding since the mid-1980s;nit has remained non-aspirational, of poor quality and involves little industry collaboration. The Vocational Education and Training (VET) system in Germany, in contrast, shows a much higher proportion of youth participation, more intense involvement of the private sector and is anchored in the law.
Dragolov, Georgi; Ignácz, Zsófia; Lorenz, Jan; Delhey, Jan; Boehnke, Klaus
The study Social Cohesion Radar – An international Comparison of Social Cohesion offers an assessment of the degree of social cohesion in 34 advanced societies (27 member states of the European Union and seven other Western OECD countries: Australia, Canada, Israel, New Zeal-and, Norway, Switzerland, and the US) in four time periods from 1989 to 2012. This Methods Report presents a detailed documentation of the methodology behind it.
Youth unemployment is one of the biggest problems facing Europe. It has increased substantially in most countries since the 2008–2009 financial crisis, but has been rising
relative to the unemployment rate of older adults for far longer. This report presents new statistical analysis of the problem, and uses the results to assess the different roles that education and training, business behaviour and labour market institutions play in young people’s transition from compulsory schooling to a job suitable to their level of skills and qualifications. It concludes that policymakers need to focus on this transition
in its entirety, rather than on narrow labour-market...
Böhmer, Michael; Weisser, Johannes; Hoch, Markus; Schneidenbach, Tina
The “Globalization report 2014: Who benefits most from globalization?” study comprises two parts. The first part focuses on the question to what extent different countries have benefited from globalization in the past and to which degree this is possible in the future. The second part uses the Prognos Free Trade and Investment Index to offer a differentiated measure for the attractiveness of foreign markets for German companies.
Glosserman, Brad; Walkenhorst, Peter; Xu, Ting
The global order has been in flux since the end of the Cold War. Two fundamental trends are reshaping the international system: Power shifts at the global level are creating a more diverse international order, in which emerging and resurgent players pursue and assert their own interests. While it is not clear whether Western economic, political, and cultural dominance is coming to an end, there is no mistaking the world’s growing pluralism. At the same time, the emerging international concert – or cacophony – is characterized by deepening interdependence. All major (and minor) powers are facing challenges of economic growth,...
Over-the-counter (OTC) derivatives markets, in particular interest rate derivatives (IRD), have grown
significantly in recent decades and now constitute a systemically important component of financial
services activity. The UK plays a central role in clearing derivatives, both at a global and EU level. It is
the single biggest venue for OTC derivatives activity and is even larger in terms to euro-denominated
IRD contracts clearing. Yet, the fact that a large share of euros is traded, and will be traded after Brexit,
in a non-euro area country raises questions about the regulation and supervision of such markets and
the sustainability of liquidity provision, particularly during a time...
Núñez Ferrer, Jorge; Simonelli, Felice; Renda, Andrea.; Di Salvo, Mattia; Zarra, Antonella; Bosc, Romain; Bouyon, Sylvain; Rinaldi, David
The Hercule III programme was established by the European Commission to promote activities against fraud, corruption and any other illegal activities affecting the financial interests of the Union. In compliance with Article 13 of Regulation (EU) No 250/2014 establishing the Hercule III Programme, the Evaluation Roadmap prepared by OLAF and the Better Regulation Guidelines, CEPS was commissioned to carry out a mid-term evaluation, together with three other institutes, to assess the relevance, coherence, effectiveness, efficiency, EU added value and sustainability of the programme. Based on primary data collected from 574 stakeholders and extensive desk research, the study concludes that Hercule...
Núñez Ferrer, Jorge; Rinaldi, David; Thomadakis, Apostolos; Musmeci, Roberto; Nesbit, Martin; Paquel, Kamila; Illes, Andrea; Ehrhart, Katharina
The use of financial instruments within the EU budget is becoming more and more common. The present study first revises key concepts in determining the use of those instruments, before providing an analysis of the functioning and consistency of the ex-ante assessments, which are required by regulation to help identify the rationale and scope for financial instruments. It offers recommendations to improve the ex-ante assessment process and on the use of these instruments across the EU.
This paper analyses the interactions between, on one hand, monetary policy and financial stability responsibilities of the ECB and, on the other hand, Post-Trading-Financial Market Infrastructures. In the author's opinion, payment Systems are critical for monetary policy while Central Counter Parties (CCPs) are critical for financial stability. However, in stressed conditions CCPs can be the source of risks also for monetary policy.
The development of the modern welfare state is one of
the major social and political changes in the Western countries
during the past century. Together with a group of colleagues at
the Swedish [nstitt|te for Social Research, Stockbolm University, l
have for some time been involved in a comparative study of tbis
change in 18 OECD countries. The purpose of this comparative
researcb programme is to describe welfare state development in
the Western countries, to attempt to explain tbis development,
and also to look at some of the consequences of welfare state
development.I To use the vocabulary of T. H. Marshall (1950)
one coutd say that we are studying the...
Geary, R. C.
One of the episodes in a long lifetime in statistics which, on
recoiiection,,gives the writer most satisfaction was a forthright
attack he delivered many years ago at ~a~Dublin Rotary Club
Luncheon on Opini0n-type polls. The immediate provocation
was a banner headline in a newspaper "XY Poll Does It Again"m
in a UK general election. The argument ran that as XY prophesied
that Labour would poll 49 per cent of the votes when the actual
poll turned out to be 5o per cent (both figures imaginary) this
represented an error of"only .I p e,rcent ."~ It was easy to point out
the falsityof this claim: no one in his senses.wouldhave...
Under the EU framework for dealing with banking problems, resolution is seen as an exception to be granted only if liquidation under national insolvency proceedings is not warranted. We look at the recent liquidation of two Italian banks to show how resolution and liquidation differ substantially when it comes to the scope of legislation applicable to the use of public funds. We argue that more clarity would be needed as to the role that the concepts of critical functions and public interest play in Member States’ decision to grant liquidation aid, and that the two-tier system – in which resolution...
Fredriksson, Gustav; Roth, Alexander; Tagliapietra, Simone; Zachmann, Georg.
This study provided by Policy Department A at the request of the
European Parliament’s Committee on Industry, Research and Energy
(ITRE) shows that the energy-system related impact of Brexit on EU
citizens and companies will be limited. The EU will be able to complete
its market, achieve its climate and energy targets and maintain supply
security. It appears likely (although not guaranteed) that the UK will
continue to maintain sensible environmental policies and safeguard the
rights of EU companies in the UK. However, special attention on the
impact of Brexit on the Irish energy system is warranted.
Claeys, Grégory; Demertzis, Maria; Efstathiou, Konstantinos; Raposo, Gonçalves; Hüttl, Pia; Lehmann, Alexander
The aim of this report is to analyse capital movements in the European Union in a global context. The monitoring and analysis of capital movements is essential for policymakers, given that capital flows can have welfare implications. Free movement of capital can enhance welfare if it channels savings towards productive use, but in crisis times, reliance on capital flows can also be a source of vulnerability if those flows transmit shocks across borders and disrupt local financial systems, with far-reaching spillovers into the real economy.
The first two sections are devoted to the monitoring of developments in international capital flows, cross-border...