The sound of economics is a series of podcasts about economic policy, brought to you by Bruegel.

Each episode will look at a key economic policy debate, discuss why it is important and explore some of the work that Bruegel's researchers have done in the area.

This episode is about European fiscal rules.

EPISODE 1

The strong fiscal tightening implemented in many European countries since 2010 has contributed to the poor economic recovery in Europe. This raises doubts about the effectiveness of the EU’s fiscal rules in achieving their two main objectives: public debt sustainability and fiscal stabilisation.

A key indicator in the framework is the structural budget balance, but it is very difficult to measure. Recommendations made based on the structural budget balance are often revised when initial estimates turn out to be wrong.

Another problem with the current EU fiscal framework is the opaque web of ‘flexibility’ clauses. This leads to never-ending bargaining between member states and the European Commission about the implementation of the rules, which undermines trust in them.

A recent Bruegel policy contribution by Gregory Claeys, Zsolt Darvas and Alvaro Leandro analyses and assesses the framework and proposes a new set of rules.

Producers – Giuseppe Porcaro & Vanessa Cotterell

CONTENT

The current European fiscal framework and its flaws — until min. 07:50

Bruegel scholars propose new fiscal rules — from min. 07:50

Is a European fiscal council a good idea? — from min. 11:30

SPEAKERS

Gregory Claeys — Research Fellow, Bruegel

Zsolt Darvas — Senior Fellow, Bruegel

Jochen Andritzky — Secretary General of the German Council of Economic Experts

Filippo Taddei —  Chief Economist of the Democratic Party, Italy

Presenters —  Áine Quinn, Bryn Watkins, Bruegel

Read more:

A proposal to revive the European Fiscal Framework 
by Gregory Claeys, Zsolt Darvas, Alvaro Leandro
bruegel.org/2016/03/a-proposal-…n-fiscal-framework/

How to reform EU fiscal rules
by Grégory Claeys & Zsolt Darvas
http://bruegel.org/2016/04/how-to-reform-eu-fiscal-rules/

Filling the gap: open economy considerations for more reliable potential output estimates
by Zsolt Darvas & Andras Simon
bruegel.org/2015/10/filling-the…l-output-estimates/

European Fiscal Rules

At this high-profile conference we look at the digital transformation and the disruption it may cause in various fields. Consisting of four panels, the event will provide a platform to look at 4 different aspects of the digital age: industrial policy, competition policy, Internet of things, and sustainability.

For more information, see: http://bruegel.org/events/rethinking-industrial-policy-in-the-digital-age-challenges-for-europe/

Rethinking industrial policy in the digital age - Keynote dialogue | 21 March 2019

At this event we will looked at how small and medium-sized enterprises' (SMEs) financial inclusion is at the core of the economic diversification, growth, and job creation challenges many countries are facing.

This event featured the presentation of Financial inclusion of SMEs in the Middle East and Central Asia, a recent paper by the IMF, which discusses the macroeconomic benefits that could stem from improved access to finance for SMEs in these two regions, which lag behind other regions when it comes to SME access to finance. It also highlights the range of reforms needed to unlock SME financial inclusion—from macro-financial conditions and public sector size, to institutional and regulatory issues related to competition, credit information, property rights and solvency frameworks.

Rethinking industrial policy in the digital age - Keynote dialogue | 21 March 2019

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