Tsipras’ choice : running with the hare and hunting with the hounds

On the surface, Tsipras’ decision to hold a Referendum on the EU agreement proposal seems irreprehensible. This is a  crucial decision for Greece  which would have far reaching economic and political implications for the next few years (Drachma vs Euro, Russia/EU influence). Democracy requires that the people should decide. This  narrative is nonsense. Tsipras has […]

The Greek Saga and Redemptions

The next two weeks are going to be crucial for the Greek saga. The  Frankfurter Allgemeine Zeitung reports that the Greek government has about until the first week of April before running out of cash. Assuming this is  true, a deal on reforms will have to be signed off by then. Debt coming due is […]

My paper of Fiscal Convergence and Real Divergence in the Euro area

Yesterday I presented a paper at the European Parliament in Brussels in the context of the meeting between the Parliament and the President of the Eurogroup which will take place today. I argue that more fiscal convergence in the Euro area has come at the cost of increasing economic divergence in important economic outcomes, such […]

On Monday at the European Parliament

I will make a presentation next Monday 23/2 at the European Parliament (EP) in Brussels  on “Debt sustainability and economic convergence of euro-area Member States: Challenges and Solutions“, in view of a meeting between the EP and the President of the Euro Group. The presentation will concern a paper that the EP has requested me […]

The EU new fiscal flexibility guidelines: an assessment

On January 13, the European Commission issued new  guidelines, to the European Parliament, the EU Council, the ECB, the EIB, the Economic and Social Committee and the Committee of the Regions, for “making the best use of the flexibility within the existing rules of the Stability and Growth Pact” (SGP). The report underlines that the […]

The EU Fiscal Framework: The Proof of the Pudding

I have been invited to participate to a round table organized by Bruegel , the Brussels based think-tank, assessing the Fiscal framework in the Eurozone in the present crisis (the complete program is here). In brief, I made the following four points (slides are here). 1) Since 2009 there was an unprecedented fiscal consolidation in […]