Analysis and Publications

The future of the Irish border is one of the key sticking points in the ongoing Brexit negotiations between the European Union (EU) and the United Kingdom (UK).
The outcome of yesterday’s regional elections in Catalonia reflects the electorate’s deep polarization on the issue of regional independence.
The region of Catalonia will hold critical elections on December 21. The stakes are high: the region unilaterally declared its independence on October 1 and subsequently saw the rule of its regional government suspended by Madrid’s central government pursuant to Article 155 of the Spanish constitution.
Infrastructure investment stimulates economic growth. According to McKinsey & Company, an increase in infrastructure investment equal to 1 percent of gross domestic product (GDP) would convert into an additional 1.5 million direct and indirect jobs in the United States. America’s infrastructure is in a state of disrepair. The American Society of Civil Engineers scored the country’s infrastructure a collective “D+” in 2017.
pdfRead the Publication (PDF)

In The Euro’s Difficult Future – Competitiveness Imbalances and the Eurozone’s North-South Divide author Luigi Bonatti, a professor of economics at the University of Trento in Italy, stresses that the existing North-South competitiveness divide creates growing tensions between member countries and fuels hostility towards European Union institutions. The paper illustrates why this competitiveness divide is structural, cannot be tackled by macroeconomic policies, and could threaten the euro’s survival.

 
pdfRead the Publication (PDF)

To many, the European Union (EU) is a complex entity overburdened by rules. In The European Union Could Be Simple, Inclusive, or Effective. Pick Two., author Dimiter Toshkov, an associate professor at the Institute of Public Administration at Leiden University, presents the structural dilemma facing the EU: accommodating the diverse interests of twenty-eight member states while delivering effective policies for over 510 million citizens in a simple way.

 
The recent financial policy shifts agreed upon by European Union (EU) member states mark a move toward European economic growth and suggest a post-Brexit European capital market is starting to take shape.

On May 30, EU member states at the European Council set forth a series of regulatory policies designed to diversify the funding sources available to small- and medium-sized enterprises (SMEs) and early-stage companies. They also agreed to a regulatory policy regarding securitization.

These policy shifts are crucial to the creation of a common capital market in Europe that includes a larger role for market-based finance alongside banks in financing growth and innovation. They are also crucial to developing a foundation for an innovative economy that can contribute to dynamic growth prospects with particularly European characteristics, as discussed in the Atlantic Council’s recently published EuroGrowth Initiative Report
 European venture capital (VC) suffers from fragmentation, undersized funds, lack of private capital, excessive and unfavorable regulations, dependence on public investment, and an often risk-averse culture. These factors that stymie VC in Europe are interconnected and mutually reinforcing.

The European Union (EU) is still not one large VC market; instead, the EU is made up of twenty-eight markets with different regulatory regimes. To market their funds across different EU member states, many VC fund managers must pay a fee and register their funds in each EU country. National corporate tax systems throughout the EU actively discourage equity financing and incentive debt financing. For funds operating across EU borders, double taxation remains a serious obstacle.  EU-wide regulations, such as Basel III and Solvency II, impede equity investments by banks and large insurance companies. As a result of this fragmented VC market, today’s typical European VC fund only operates in one EU member state and is much smaller than its US competitors. 
pdfRead the Publication

pdfRead the One-Pager

The European Union (EU), a vital partner for the United States, is facing numerous challenges, including massive migration flows, the UK’s vote to leave the EU (Brexit), and rising support for anti-EU and populist parties in upcoming elections in several European countries. In Charting the Future Now: European Economic Growth and its Importance to American Prosperity, the Atlantic Council’s EuroGrowth Initiative proposes pragmatic steps to restore European economic growth, safeguard the European project, and reinvigorate the transatlantic alliance.
 
pdfRead the Publication (PDF)

The European Union (EU) is facing numerous crises, including massive migration flows, the UK’s vote to leave the EU (Brexit), and rising support for anti-EU and populist parties. In “The EU’s Capital Markets Union—Unlocking Investment Through Gradual Integration,” author Zdenek Kudrna, a post-doctoral researcher at the University of Salzburg, argues that these crises all share one characteristic: They would be easier to resolve if EU economies grew faster.

To reinvigorate economic growth across Europe, the President of the European Commission, Jean-Claude Juncker, launched the “Juncker Plan” in November 2014. Kudrna introduces the Capital Markets Union (CMU) as the core regulatory initiative of this plan. 

 


    

RELATED CONTENT