The Second RAstaNEWS Executive Briefing (EB) was organized by the Italian Institute for International Political Studies (ISPI) and held at CEPS premises (Brussels) on December 3^rd, 2015. 

The EB aimed at  stimulating  dialogue  and  engaging  academics,  think  tank experts,  policymakers,  and  private  stakeholders  from  all over Europe. In doing so, the EB brought around the table 31 selected participants, among which were representatives of EU Institutions (e.g. Francesco Mazzaferro, Head of the Secretariat, ESRB; Andreas Beyer, Coordinator monetary policy, ECB; Alienor Margerit, Head of Unit E3, DG FISMA, European Commission; Gilles Mourre, Head of Unit, Fiscal policies and surveillance, DG ECFIN, European Commission), scholars (e.g. Franco Bruni, Bocconi University; Massimo Bordignon, Catholic University of the Sacred Heart; Marcello Messori, LUISS), representatives of private institutions such as banks/firms (e.g. Florence Pisani, Candriam; Laurent Lascols, Société Générale), and representatives of think tanks/research centers (e.g. Clemens Fuest, Director, ZEW; Daniel Gros, Director, CEPS).

A RAstaNEWS position paper, “Monetary Policy and Prudential Regulation: In Search of a New Normal”, was circulated prior to the EB and presented during the first two Sessions. Participants were encouraged to discuss, criticize and complement it with additional proposals during the event. The aim of the EB was to involve stakeholders in participating with the RAstaNEWS network of academic experts and scholars, in order to devise viable options to restore the Eurozone’s growth potential and improve the employment prospects of EMU countries, also with a view to proposing a way forward to reform the EMU economic governance.

Concept of the Executive Briefing

The standard framework that has guided monetary policy for the last two decades is in disarray. First, dangerous macroeconomic imbalances can grow even under low inflation and stable output gaps. Second, even long-term price stability today seems insufficient to secure financial stability. The crisis showed that ensuring – via micro-prudential policies – the soundness of individual financial institutions is not sufficient to maintain the stability of the whole financial system. This is why macro-prudential policies are more than ever necessary. Financial stability – largely neglected as a monetary policy goal in the pre-Lehman consensus – should become an explicit goal of monetary policy. Finally, EMU policymakers are confronted with the daunting task of both reducing accumulated debt and promoting efficiency-enhancing but politically controversial reforms.

As scholars and experts debate these issues, last May the EU Commission released the Five Presidents’ Report, “Completing Europe’s Economic and Monetary Union”. Currently, the EU Commission is in the process of fleshing out its own proposals on the immediate and concrete steps to be undertaken by the EU Institutions between end-2015 and mid-2017, tackling “Stage 1” of the Roadmap included within the Five Presidents’ Report.

This Executive Briefing aims at encouraging an open and informed discussion between experts, scholars, policymakers, and stakeholders in general, about the optimal and feasible policies and tools, both at national and EMU level, that may reduce the risks of future crises, foster convergence between Eurozone Member States, and increase coherence between scientific findings and the EU Institutions’ policy action in the short-to-medium term.

Programme and speakers' presentations

9.30-11.00 Internal RAstaNEWS meeting (Steering Committee)

11.00-13.00 Session 1 – Monetary Policy and Macro-prudential Regulation: In Search of a New Normal

This session will be devoted to the presentation and discussion of the position paper produced by the RAstaNEWS research team. On the basis of the lessons of the Global Financial Crisis, the paper advocates a key role for financial stability in a new multiple mandate for central banks.  In order to pursue financial stability, as well as monetary stability, macro-prudential regulation should be brought to the fore and the coordination with monetary policy explored in detail. The paper calls for bolder monetary and macro-prudential policies, with a view to supporting a broader and shared economic recovery in EMU countries, and to facilitating the structural reform process in peripheral countries.

Chair: Patrizio Tirelli, Professor, University of Milan-Bicocca and RAstaNEWS Coordinator

Presentation: Domenico Delli Gatti, Professor, Catholic University of the Sacred Heart and RAstaNEWS (slides)

Speakers:

Andreas Beyer, Coordinator monetary policy, ECB (slides)

Gilles Mourre, Head of Unit, Fiscal policies and surveillance, DG ECFIN, European Commission (slides)

Florence Pisani, CANDRIAM Asset Management (slides)

Debate

13.00-14.00 Lunch

14.00-15.30 Session 2 – Strengthening the Banking Union: The architecture of Macro-Supervision in Europe

This session will delve deeper into a preliminary evaluation of the first steps of the Banking Union, outlining remaining challenges and policy opportunities. In particular, this session will discuss the current arrangement in the assignment of macro-prudential supervision tasks to and within different authorities/institutions, and feasible options to improve the current system. 

Chair: Franco Bruni, Vice President, ISPI and Chair of the RAstaNEWS International Advisory Board

Presentation: Angelo Baglioni, Professor, Catholic University of the Sacred Heart and RAstaNEWS (slides)

Speakers:

Paolo Angelini, Vice Head, Department of Banking and financial surveillance, Bankitalia (slides)

Laurent Lascols, Head of Group Public Affairs, Société Générale (slides)

Thilo Liebig, Head of Division, Bundesbank (slides)

Alienor Margerit, Deputy Head of Unit E3, DG FISMA, European Commission (slides)

Francesco Mazzaferro, Head of the Secretariat, ESRB

Debate (25 min.)

15.30-15.45 Coffee break

15.45-18.15 Session 3 – Towards a Closer Union? Next Steps to Foster Real Economic convergence

This Session will start with a brief presentation of some RAstaNEWS findings on the causes of the slowdown in EMU growth during the sovereign debt crisis, pointing at the importance of faltering productivity growth in the periphery and at the limited role played by fiscal policies. The Session aims at debating in practical terms current policy issues regarding the reform of the EMU economic governance, especially discussing what is present and what is missing in the Five Presidents’ Report and in the Commission’s “Stage 1” proposals.

Chair: Daniel Gros, Director, CEPS

Presentation: Patrizio Tirelli, University of Milan-Bicocca and RAstaNEWS Coordinator (slides)

Speakers:

Clemens Fuest, President and Academic Director, ZEW (slides)

Stefano Micossi, General Director, Assonime (slides)

Debate

Closing remarks: Giuliano Amato, Judge of the Constitutional Court of Italy and former Italian Prime Minister