Executive Seminar on Governance and Future of the Eurosystem

Algemene informatie

Wilt u deze seminar in het Nederlands volgen? Schrijf u dan in voor de sessie op 22 mei.

In Europe, an important discussion is currently taking place about the future of fiscal policy in countries belonging to the euro zone, following the planned revision of the Stability and Growth Pact (SGP), and about measures to enhance stability of the euro system.

During the summer of 2020, European government leaders decided to create a pan-European corona rescue fund of about 750bn euro. This fund, which is really innovative since it is financed by bonds issued by the European Union (EU), aims at supporting those countries which were severely hit by the corona crisis and have insufficient financial means to support their economies. In return for financial support these countries, notably in southern Europe, have to implement economic reforms in order to enhance the competitiveness and resilience of their economies.

The corona crisis of 2020-2021 and the energy and inflation crisis since early 2022, related to Russia’s invasion of Ukraine, have worsened further the financial situation of many countries in the euro zone. Italy has a government debt ratio of about 140% of GDP, but also France and Italy are approaching a government debt ratio of 120% of GDP. Rapidly rising interest rates increase further the fragility of the euro zone.

Moreover, there are concerns about the poltical stability in euro zone countries such as France, Italy and Spain, where populist political parties are gaining momentum and may become part of the government (such as already in Italy). In case a populist government would pursue an anti-European course, it may have severe consequences for the stability of the euro and, also, for the stability of the European banking system.

The goal of this seminar is to come to an analysis of different scenarios in order to enhance the stability of the euro system. Without new steps it is not sure that the euro will survive the current decade. Most likely, it will be inevitable to increase the level of fiscal risk sharing on government debt in the euro zone.

How could such fiscal risk sharing be organized? A possible solution may be, following the example of the corona rescue fund, to create new pan-European investment funds to finance Europe’s ambitions on climate, sustainability, digitalization and defense.

Or are more policy actions needed in order to preserve euro zone stability?

The Expert

Prof. dr. Harald Benink has been Professor of Banking and Finance at Tilburg University since 2008. Before joining Tilburg University, he was Professor of Finance and Professor of Institutional Design of Integrating Markets at the Rotterdam School of Management, Erasmus University during the period 1999-2008. Harald Benink’s research focuses on banking and finance and on European financial and monetary integration. He has published in leading academic journals (including the Journal of Finance, Journal of Empirical Finance, Journal of Financial Stability, Journal of Financial Services Research and Journal of Risk and Financial Management) and has also published and edited a couple of books (including Financial Integration in Europe and Coping with Financial Fragility and Systemic Risk).

Furthermore, he is Founder and Chairman of the European Shadow Financial Regulatory Committee (1998) and took the initiative for setting up the Shadow Financial Regulatory Committees in Latin America (2000), Asia (2004) and Australia-New Zealand (2006). The Shadow Financial Regulatory Committees consist of prominent professors and other independent experts, issuing policy recommendations in the areas of regulation and supervision of financial institutions and markets.

Outcomes

Upon participation in this seminar, you will gain:

• Deep knowledge of the Stability and Growth Pact (SGP) revision: Understand recent changes and analyze their impact on financial stability and governance.

• Advanced insights into financial instruments and strategies: Acquire a solid understanding of key policy actions crucial for ensuring stability in the eurozone.

• Scenario analysis and problem-solving skills: Develop the ability to analyze diverse scenarios in the complex eurozone, along with effective strategies for stability and risk mitigation.

• Understanding of pan-European investment funds: Gain insight into creating and managing investment funds with a focus on climate, sustainability, digitalization, and defense, following the successful model of the corona rescue fund.

• Preparation for future challenges: Equip yourself with the knowledge and skills to proactively address upcoming financial and political challenges within the eurozone.

• Applicable knowledge within your organization: Directly apply acquired knowledge and skills to formulate policies and implement strategies promoting financial stability.

• Strategic perspective on European financial markets: Develop a deeper understanding of European financial markets and a strategic perspective for making well-informed decisions in a rapidly changing environment.

Program

Level: VRC Masterclass
Modality: VRC Seminar
Time: 11:00 – 14:30
PE-points: 4
Member price: € 295,-
Non-member price: € 495,-

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