Stable finance in an unstable world

Georg Feigl (1) , Markus Marterbauer , Miriam Rehm , Matthias Schnetzer , Sepp Zuckerstätter , Lars Nørvang Andersen (2) , Thea Nissen , Signe Dahl , Peter Hohlfeld , Benjamin Lojak , Thomas Theobald , Achim Truger , Andrew Watt , Guillaume Allegre (3) , Céline Antonin (3) , Christophe Blot (3) , Jérôme Creel (3) , Bruno Ducoudre (3) , Paul Hubert (3) , Sabine Lebayon , Sandrine Levasseur (3) , Hélène Périvier (3) , Raul Sampognaro (3) , Aurélien Saussay (3) , Vincent Touzé (3) , Sébastien Villemot (3, 4, 5, 6)

1 Institute of Anatomy
2 Aarhus University [Aarhus]
3 OFCE - Observatoire français des conjonctures économiques (Sciences Po)
4 PSE - Paris School of Economics
5 PJSE - Paris Jourdan Sciences Economiques
6 CEPREMAP - Centre pour la recherche économique et ses applications

Previous chapters have addressed the need for a a different policy mix in Europe, with a greater emphasis on fiscal policy and for policies to address imbalances within, in particular, the Euro Area. There is a third economic policy area in which reform is under way, but in Europe needs to intensify its efforts and make careful, evidence-based choices: finance. The specific features and dysfunctionalities of economic governance in Europe have exacerbated the crisis but this, it should not be forgotten, was originally triggered by problems in the financial sector. Since then national governments, not only in Europe but across the world, have been struggling to establish a sensible regulatory framework for the financial sector, one that permits, even promotes, low-cost lending for real investment and maintains an efficient payments system, while avoiding the pathologies that have caused instability and rising inequalities. Because of the transnational nature of the financial sector, the EU-level has also been heavily involved in developing the regulatory framework. The two main “building sites” are Banking Union, on which considerable progress has already been made, and the incipient Capital Markets Union. In this concluding chapter we first consider the problem of non-performing loans and discuss the policy options availbe for addressing the problem. We then turn to Capital markets Union, describing the initiatives under discussion, with a focus on proposals to reactivate the securitization market in Europe.

Mots clés: European Union; Policy mix; Fiscal Policy

Mots clés: Economic Governance

Domaines: Economies et finances

Georg Feigl, Markus Marterbauer, Miriam Rehm, Matthias Schnetzer, Sepp Zuckerstätter, et al.. Stable finance in an unstable world: Chapter 5. Revue de l'OFCE, 2016, IAGS 2017, pp.174 - 209. ⟨hal-03459080⟩