With disparities in national unemployment rates reaching record levels, the debate on fiscal stabilisers in Europe has gained new momentum. Can a European unemployment insurance scheme help to absorb asymmetric shocks and bring about the desired level of macroeconomic stabilisation? What should such an unemployment benefit system look like? The contributions to this Forum explore the benefits expected from a European unemployment insurance scheme and discuss the difficulties in establishing such a policy.
This figure from the Forum article The Effects of an EMU Insurance Scheme on Income in Unemployment by H. Xavier Jara and Holly Sutherland shows the coefficient of income stabilisation due to the national tax-benefit system as a whole, as well as the additional effect of the EMU-UI. Click on the figure for further information.
Investment expenditure collapsed in Europe in the aftermath of the global financial crisis. By 2013, total investment across the EU had fallen about 20 per cent from its peak in 2008. During the crisis, the decline of investment in Europe has been double that in the US and Japan. By the beginning of 2014, investment started to recover in Europe but is still growing at a slower pace than nominal GDP.
"An automatic stabiliser at the EMU level would help uphold aggregate demand at the right time, and it would help prevent short-term crises from unleashing longer-lasting divergence within the monetary union. It would provide an answer to the simple question of a disillusioned European voter: 'Where is Europe when we need it most?'"
- from László Andor's Forum article Basic European Unemployment Insurance – The Best Way Forward in Strengthening the EMU’s Resilience and Europe’s Recovery
In June the European Central Bank announced a series of new steps to counter deflation. “Better late than never” was the response of many of the critics. But rather than bemoaning the failure of President Draghi & Co. to move earlier, it is more productive at this stage to ask: are the central bank’s measures now up to the task? Will they work, in the sense of taking deflation off the table and giving a boost to economic growth?
The continued economic crisis has become a major test for the labour markets of individual member states. Labour mobility within the European Union has the potential to help to reduce labour market pressures and ease economic imbalances. However, a long-term loss of working age population can be detrimental to sending countries. This Forum explores mobility patterns within the European Union and analyses the labour market and welfare effects of labour mobility.
by Debora Revoltella
by Daniel Gros, László Andor, Sebastian Dullien, H. Xavier Jara, Holly Sutherland
by Ansgar Belke
by David Cronin
by Dennis Tamesberger, Heinz Leitgöb, Johann Bacher
by Aldis Austers
by Barry Eichengreen
Vassilis Monastiriotis, Niamh Hardiman, Aidan Regan, Chiara Goretti, Lucio Landi, J. Ignacio Conde-Ruiz, Carmen Marín, Ricardo Cabral
J. Pelkmans, M. Goyens, H.-P. Burghof, S. Leibfried
Davide Viaggi, Jean-Christophe Bureau, Stefan Tangermann, Alan Matthews, Christophe Crombez, Louise Knops, Johan Swinnen
Lukas Menkhoff, Reeno Meyer
Wolfgang Lechthaler, Mario Larch, Gabriel Felbermayr