Covid-19 and Financial Stability in Europe
This article, released by the VOX- CEPR Policy Portal with the contribution of several authors, considers that “the involvement of the EU in fighting the detrimental consequences of the covid-19 crisis has to be increased”.
- According to the authors this is essential to bridge the “cash flow shortfalls” of most of the economic actors at the Eurozone and to avoid this liquidity problem becomes a solvency issue, which ultimately could undermine the financial stability of euro area member states.
- So far governments are implementing “rescue programmes” that according to them “have important side effects as they are largely debt based, suggesting a rapid rise in debt levels at the firm level, not coordinated at a European level, and differ greatly in volume across EU member states”
- Instead of that, they propose a simple scheme denominated “European Pandemic Equity Fund” (EPEF) based on equity-like investments, particularly in SMEs: “it basically trades an initial cash flow injection by the EPEF into the firm against a proportionate participation in future gross earnings (‘value added’) or net earnings (‘profits’)”.
- However the devil is in the details and this article tackles some open questions in the definition of this scheme such as the eligibility criteria, the size and the structure of the investment, the funding of the EPEF…
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Según @FMI, el margen de la política fiscal y monetaria para mitigar los riesgos a la estabilidad financiera es más limitado hoy que durante buena parte de las dos últimas décadas, ante los elevados niveles de deuda e inflación en muchas economías.
Según Ramón Casilda, “ya no se trata únicamente de capital español invirtiendo en América Latina, sino también de capital latinoamericano utilizando España como base europea”, reforzando un espacio económico transatlántico más equilibrado.
According to @IMF, the capacity of fiscal and monetary policy to mitigate financial stability risks is more limited today than it was during much of the past two decades, given high debt levels and inflation in many jurisdictions.
Según José Carlos Díez, Profesor de economía de la Universidad de Alcalá, los españoles accedemos a algunas de las hipotecas más baratas de Europa con tipos de interés inferiores al Euribor y a la deuda pública a largo plazo.
Según el IEE, España presenta una presión fiscal empresarial superior a la media de la Unión Europea tanto en porcentaje sobre la recaudación total como en porcentaje del PIB.
According to Ramón Casilda, “it is no longer just a matter of Spanish capital investing in Latin America, but also of Latin American capital using Spain as a European base,” reinforcing a more balanced transatlantic economic space.
According to José Carlos Díez, Professor of Economics at the University of Alcalá, Spanish households have access to some of the cheapest mortgages in Europe, with interest rates below both Euribor and long-term government bond yields.
AEB, CECA y UNACC proponen medidas para aumentar la capacidad de financiación de la banca en más de 2 billones de euros en la eurozona, de los que más de 250.000 millones corresponderían a España, reforzando la inversión y la financiación de la economía.
According to the IEE, Spain's business tax burden exceeds the European Union average, both as a share of total tax revenues and as a percentage of GDP.
Según Boston Consulting Group, la nueva regulación posterior a la crisis financiera global (GFC) reforzó la resiliencia del sector, pero institucionalizó un sesgo orientado a eliminar cualquier riesgo en detrimento del crecimiento económico.
Según Ramón Casilda el acuerdo UE Mercosur permitirá un ahorro arancelario de aproximadamente 4.000 millones de euros anuales, una cifra muy superior a lo esperado en los acuerdos con Canadá y Japón.
AEB, CECA and UNACC propose measures to increase banks' lending capacity by more than €2 trillion in the euro area, including over €250 billion in Spain, providing additional resources to strengthen banks and finance new investment.
Según el economista José Carlos Diez, la banca española tiene un exceso de depósitos y liquidez disponible para atender la demanda de crédito de empresas y familias, y además lo hace con los tipos más bajos de Europa, según el BCE.
According to Boston Consulting Group, regulation brought in after the GFC strengthened the financial sector’s resilience but institutionalized bias towards removing all risk over economic growth.
Según CEPS, la complejidad regulatoria y supervisora de la UE supone un freno estructural a la integración, inversión y profundidad del mercado, con costes que recaen especialmente en pequeñas empresas nuevos entrantes y modelos de negocio transfronterizos.
According to Ramón Casilda, the EU–Mercosur agreement will generate annual tariff savings of around €4 billion, which is significantly higher than the savings expected under the agreements with Canada and Japan.
Según el BCE, un sistema de pagos eficiente, seguro e integrado reforzaría el papel internacional del euro y aportaría beneficios como menores costes de financiación, menor exposición a fluctuaciones cambiarias y mayor protección frente a sanciones.
Economist José Carlos Díez notes that Spain’s banking sector has an excess of deposits and sufficient liquidity to meet the credit demand of companies and households, and does so at the lowest interest rates in Europe, according to the ECB.
Según el IEA, uno de los debates clave en la UE sobre simplificación de la regulación financiera es si incluir explícitamente la competitividad, eficiencia o crecimiento como objetivos de las autoridades regulatorias, siguiendo el modelo del Reino Unido.
According to CEPS, regulatory and supervisory complexity acts as a structural constraint on integration, investment and market depth, with costs that weigh most heavily on smaller institutions, new entrants and cross-border business models.
Según el Center for the Governance of Change de IE University, unos mercados financieros más profundos e integrados reforzarían el papel global del euro. Esto requiere, entre otros elementos, sistemas de pago resilientes e interoperables y completar la unión bancaria.
According to the ECB, an efficient, secure and integrated payment system would strengthen the international role of the euro and deliver benefits such as lower financing costs, reduced exposure to exchange rate fluctuations and greater protection against sanctions.
According to the IEA one key debate in the EU on financial regulation simplification is whether to explicitly include competitiveness, efficiency or contribution to growth as objectives of the regulatory agencies, following the UK example.
According to IE University’s Center for the Governance of Change, deeper and more integrated financial markets would strengthen the euro’s global role. This requires, among other elements, resilient and interoperable payment systems and completing the banking union.