- Détails du magazine
- Première publication
- 17 Oct 2014
- Période de publication
- 4 fois par an
- Accès libre
Pages: 10 - 35
In reaction to the sharp deterioration of fiscal positions and a sovereign debt crisis in the majority of EU member states, EU leaders have been strengthening the EU economic governance framework, in particular for the eurozone member states. This has been reflected mainly through a reinforcement of the Stability and Growth Pact (SGP) within the so-called six-pack and through the recent adoption of the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union (TSCG).
The objective of this paper is to present the main decisions taken to address intensifying problems in the EU and assess them from the point of view of stability of the eurozone. The paper argues that the recent adoption of the six-pack and of the TSCG has created a legal basis for more effective governance structure that is much stronger than previously, and closer fscal coordination among EU member states in order to ensure public fnance sustainability. The practical results will depend, however, on the political willingness of countries to accept the new rules and rigorous enforcement of those rules.
Most of the new solutions continue the previous approach: stricter preventive and punishing rules, and their more rigorous application. TSCG has adopted a new element: parallel to EU rules, there should be enhanced national rules (possibly in the form of constitutional commitments) and national institutions responsible for fscal discipline. This approach implies that international rules are not strong enough for sovereign countries, which agree to be subject to democratically elected national authorities but do not want to follow decisions by “outside” institutions. In addition, reverse voting in the Council encourages for more pragmatic, economically justifed use of the modifed SGP. In view of a lack of political will to move forward into a political union, this seems the only realistic approach to ensure fscal stabilization and keep the eurozone alive in the short and medium run.
Two main research methods have been applied:
Statistical analysis of data on changes of the public fnances in the EU member states (budgetary defcit and public debt), comparative analysis of successive EU documents on strengthening economic governance and identifcation of strong and weak aspects of the new documents from the point of view of stability of the eurozone.
Statistical analysis of data on changes of the public fnances in the EU member states (budgetary defcit and public debt),
comparative analysis of successive EU documents on strengthening economic governance and identifcation of strong and weak aspects of the new documents from the point of view of stability of the eurozone.
The main conclusion is that in a situation of a lack of political will to move forward into a political union, the only realistic approach to ensure fscal stabilization and keep the eurozone alive in the short and medium term seems to be to enforce rigorously the recently adopted new commitments aiming at better fscal control of euro area members.
- economic governance
- Economic and Monetary Union (EMU)
- Stability and Growth Pact (SGP)
- fscal policy
- Treaty on Stability
- Coordination and Governance in the Economic and Monetary Union (TSCG)
- Accès libre
Pages: 36 - 47
This paper analyzes possible consequences of new reforms of the EU supervisory structure. The focus is on its impact in the supervision of European banking groups operating on the Polish fnancial market. The paper also assesses proposals for new regulation in the banking sector submitted by the European Commission.
There is a possibility that the new regulations would constitute acceptance of a higher level of risk in the fnancial sector. A further weakening of supervisory standards is anticipated to hide shortages in own sources of funding. Additionally, there may be increased pressure for financing the economy to speed up economic growth. So far, sufficient steps have not been taken towards restoring the health of the fnancial sector. Effective actions can be performed only at the domestic level. However, they are only possible if they are not restricted by European law. Effective counter-cyclical prevention at the credit market is possible only at the local level.
The paper emphasizes that the lack of proper country-level fnancial supervision can cause systemic risk at the local level. Those risks quickly enlarge and spread to become international in scope.
- fnancial supervision
- fnancial sector
- systemic risk
- fnancial stability
- home-and host-supervisor
- Systematically Important Financial Institutions (SIFI)
- European Supervisory Authorities (ESAs)
- Accès libre
Analiza Działań o Charakterze Pomocy Publicznej Podjętych Przez Państwa Członkowskie UE w Odniesieniu Do Sektora Bankowego w Latach 2008-2011
Pages: 48 - 67
This paper's objective is analysis of state aid actions carried out by the Community member states that were undertaken between 1 October 2008 and the end of 2011 in reaction to the fnancial crisis. The analysis includes objectives, the scope and the amount of aid granted by the member states and the amount of aid actually used by fnancial institutions in these countries. In addition, the effectiveness of undertaken actions was assessed.
State aid actions targeted at rescuing the banking sector were ratified by 22 member states, whereas fnancial institutions in 19 member states made use of the granted aid. Primarily, the actions undertaken by the member states mainly comprised granting guarantees. However, following the spread of the crisis, the aid focused on bailing out banks and undertaking actions regarding assets of reduced quality. The fnancial crisis did not hit banking sectors of the member states equally; therefore, the size of the aid varied significantly. In 2008-2011, banks were using less than 35% of the granted resources, while the aid provided by Ireland, the United Kingdom, Germany, Denmark, and France comprised 73% of all used resources.
State aid helped calm the situation in fnancial markets and ensured stability of the fnancial system; the aid most likely prevented mass bankruptcies of banks. On the other hand, they may harm competition within the EU internal market. Currently, the key task for the member states is discontinuation of the use of state aid, as well as adequate restructuring of the banks that received state aid.
- public aid
- EU banking sector
- Accès libre
Niedostateczne Uprawnienia Nadzorcze Europejskiego Banku Centralnego Oraz Zasada Nadzoru Kraju Macierzystego w UE a Kryzys Subprime
Pages: 68 - 86
The aim of this paper is to analyze main weaknesses of the pre-crisis supervisory and regulatory architecture of the fnancial market in the EU, a system which has become a catalyst of the subprime crisis in Europe. A review of the literature and an analysis of legal documents were used to research the subject. The major conclusion of the paper is that these imperfections have resulted mainly from an insufficient supervisory mandate of the European Central Bank (ECB), as well as from the principle of home-country supervision. Before the crisis, activities of the ECB were focused mainly on its basic monetary policy mandate while in the case of macro prudential supervision, the ECB could only form recommendations that were not effectively translated into specific actions of national micro prudential supervisors. Empowering the ECB with microprudential competences was proposed in the so-called choice-based approach, which was not implemented due to the fact that the member states perceived it as a limitation on their sovereignty. Another weakness of fnancial supervision in the EU originated from the principle of home-country supervision, according to which a home-country supervisor had a dominant position over the host-country supervisor. The principle has led to considerable information asymmetry, as well as to a conflict of interests between national supervisors, which impeded proper crisis management. The post-crisis reform has eliminated none of these problems.
- subprime crisis
- EU fnancial supervision
- fnancial market regulations
- Accès libre
Pages: 87 - 113
The article begins with a presentation of the new European Stability Mechanism implemented in September 2012. It describes the operating principles, procedures for granting fnancial assistance for EMU members, and organizational structure of the institution. The major objective of the article is to assess the effectiveness of ESM from the economic perspective; therefore, the research question is whether the ESM can prove useful in combating the current European sovereign debt crisis (and possible future crises). In order to answer this question, EU treaties and legal acts as well as the economic literature were analyzed. The author concludes that the ESM has very limited power in fighting the sovereign debt crisis, since its capability to support the largest EMU countries (should the need arise) is highly insufficient. Furthermore, being a simple loan mechanism, it cannot prevent any future crises.
- European Stability Mechanism
- euro area
- European sovereign debt crisis
- Accès libre
Porównanie i Ocena Funkcjonowania Zintegrowanego Nadzoru Fnansowego Na Rynku Niemieckim, Brytyjskim i Polskim
Pages: 114 - 129
The purpose of supervision of the whole fnancial market is to ensure the proper functioning of the market, its stability, security, and transparency, as well as to ensure confidence in the fnancial market the protection of the interests of participants. This is achieved through implementation of the rule of law, in particular concerning banking supervision, insurance and pension supervision, supervision of the capital market, and supplementary supervision laws of credit institutions as well as insurance and investment companies which are parts of fnancial conglomerates. The European Union does not impose any particular form of organizational supervision over national legislatures. Despite this, in many member countries, including the UK, Germany and Poland, the integrated supervisors for banks, insurance companies and capital market do operate.
The article analyses the process of introducing integrated fnancial market supervision in the UK, Germany and Poland with an aim to compare their effectiveness.
- integrated fnancial supervision
- fnancial sector
- fnancial market
- fnancial stability
- Financial Services Authority (FSA)
- Komisja Nadzoru Finansowego (KNF)
- Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin)
- Accès libre
Pages: 130 - 151
The magnitude of the fnancial crisis, which begun in the U.S. in 2007-2008, revealed gaps in the supervisory system that were amplified in the increasingly integrated fnancial markets. Liberalisation of capital flows, which created space for functioning of international fnancial institutions of systemic importance, increased fragility of singular economies to anomalies occurring in other regions and facilitated transition of the crisis. At the same time, the ineptness of the supervisory mechanisms in handling systemic problems inherent in those realities was demonstrated. Confronting those challenges, the EU made a considerable effort to establish by 1 January 2011 the European System of Financial Supervision - a micro- and macro prudential system designed to facilitate coordination between national supervisors and enhance early warning capacities. In the United States, broad reforms were put into play by adoption of the Dodd-Frank Act. Given that effectiveness and cooperation require a convergence of standards and a similarity of institutional framework facilitates the task, the institutional analysis provided in the article enables a critical comparison of the reform efforts. It remains to be verified in practice, however, whether concerns about only the nominal “outside” nature of the reform prove accurate.
- Lamfalussy process
- de Larosière report
- European fnancial supervision system
- European Systemic Risk Board
- European Supervisory Authority
- Consumer Protection Act
- Accès libre
Pages: 152 - 168
As the importance of tariffs in international trade has declined with the reduction of tariff rates under the GATT/WTO programs of multilateral trade liberalization, most governments prefer to protect domestic industries from foreign competitors through a variety of non-tariff barriers. Antidumping actions have recently become the world's biggest trade impediment due to their specific features and the antidumping activity of new users. Since China has become the major engine of world trade growth in recent years, it also has become the largest anti-dumping target in the world. However, the present world competition situation implies that world trade liberalization might arouse regional trade friction. The objective of this research is to identify whether China's WTO accession changed China's situation with regard to EU antidumping actions. The research analysis empirically proved that trade liberalization could partly affect the EU's antidumping actions against Chinese exports and the higher degree of industrial concentricity becomes a motive to increase the EU's antidumping activities against China.
- multilateral trade liberalization
- industrial concentricity
- Accès libre
Pages: 169 - 189
The concept of Corporate Social Responsibility emerged in the United States and spread to Europe and Asia while being adapted to national/local characteristics. Since borders between markets and societies are blurring and globalization is promoting MNCs which find themselves acting in hybrid societies, international institutions put efforts into the development and moral acceptance of global CSR standards. The scientific interest in CSR focused on the conflicts between company returns and benefits for society. The resulting concepts of performance-oriented, awareness-oriented and welfare-oriented CSR should facilitate the evaluation of CSR strategies implemented by MNCs. In research on the cultural dimensions of economies, it might be possible to allocate geographically the three concepts. Regarding the newly emerging Chinese MNCs, the paper aims to shed light on which concept they follow. On the one hand, CSR concepts of American and/or European MNCs that are present in China might serve as a role model; on the other hand, by learning from Taiwanese/ Hong Kong MNCs, a “greater China CSR approach” might emerge. Empirical studies and own field research suggest that compared to American and European companies, CSR is less deeply rooted in Chinese companies. Furthermore, significant differences between Mainland China, Hong Kong and Taiwanese companies indicate that a Greater Chinese CSR approach does not yet exist. Therefore, it cannot be assumed that American and European CSR concepts will experience a Chinese influence in the near future.
- Corporate Social Responsibility
- Multinational Corporations
- Corporate Governance
- Accès libre
Pages: 190 - 213
The paper consists of two parts. The first outlines determinants of international investment position (IIP); it also attempts to determine conditions of external balance of payments of a country with a negative net IIP. Ten the Laffer curve was used to determine a maximal economically justifed level of inviting foreign capital in order to support the country's economic development. This level determines equalization of net costs of the IIP income maintenance with an increase in the country's global product during a given period. When a national economy reaches this level, it creates a serious threat to its development. Similarly, failing to meet conditions of the external balance of payments usually results in serious economic crisis in the given country.
The second part is devoted to the presentation of the IIP of Poland. In the first decade of the current century, Poland supported its economic development by attracting significant amounts of foreign capital in the form of share and creditor capital. It led to a high negative net IIP, a situation which may threaten the stability of a country's external payment position and developmental perspectives. Nevertheless, the analysis of the IIP structure of Poland did not indicate the appearance of any extreme threats to its external payments position at the beginning of the second decade of the 21st century. However, excessive absorption of global product growth by IIP income maintenance may arouse some concern. This led to the conclusion that particular corrections in the country's economic policy are necessary.
- Lafer curve
- international investment position
- external balance of payments
- Accès libre
Pages: 214 - 232
The aim of this research is to look at how the recent economic crisis, which was so strong that its consequences are still apparent nearly six years later, impacted Poland, which has been resilient to it compared with other economies, and what role was played by Poland's internationalization or its openness. The approach involves a detailed analysis of not only such staple macroeconomic variables as gross domestic product and changes in the trade structure but also of such openness factors as shifs in inward foreign direct investment across industries and the changes (for example, employment and productivity) seen in multinational firms present in Poland. The main finding is that the openness of the Polish economy allowed it to rake in various benefits after 2007 while not being too exposed to the international arena (for example, membership in the euro zone). Thus, Poland showed a positive balance relating to the impacts on the Polish economy emerging from the crisis.
- economic crisis 2007