Past events

The panel will discuss the global implications of the latest US tax reform adopted on 1 January 2018.

Session Chair
Andreas Peichl, ifo Institute

Speakers
Michael Devereux (Oxford University Centre for Business Taxation)
Clemens Fuest (ifo Institute and University of Munich)
Michelle Hanlon (MIT, Sloan School of Management)
Victoria Perry (International Monetary Fund)

The panel will discuss what reform and future governance of the euro area should look like in order to achieve a sustainable and incentive-compatible architecture, prosperous development and greater cohesion among its members. The panel will address questions like: are the euro area and the European financial sector stabilised and sustainable – where do we stand? How can the fiscal discipline of sovereigns be strengthened? Do we need more elements of risk-sharing or a focus on risk reduction? How can risk-sharing and market-discipline be reconciled with achieving an incentive-compatible architecture in the currency union? Should the European Stability Mechanism (ESM) be transformed into a European Monetary Fund? Does the currency union need an exit clause and viable insolvency procedure for its member states? How should TARGET-II imbalances be managed in the future?

Positive economic developments in Europe in recent years do not change the fact that there is an urgent need for reform. That is why the proposals by the French President Macron, the European Commission and, most recently, the signal sent by the “New Beginning for Europe” featured in the German government’s coalition agreement, are all encouraging signs. We are nevertheless still a long way off any political consensus over how exactly a reform programme should look. Proposals of self and reinsurance against labour market shocks could be a key component of such a consensus. Such insurance would facilitate far more effective cushioning against economic shocks in the Eurozone due to the high share of national self-insurance, with practically no incentive effects, let alone long-term transfers.

The decision of the UK to leave the EU has given rise to a fundamental debate about the future of political and economic integration in Europe. In this debate the concept of a multi-speed Europe is finding increasing support. But a multi-speed Europe suggests that all countries are heading in the same direction, that is, towards more integration. One alternative would be a multi-tier EU, under which members can choose to belong to a variety of "country clubs". Each tier or "club" could then be characterised by a specific form of policy cooperation or integration like an internal market, a customs union, the Schengen zone with common external border controls and immigration policies, the Eurozone, possibly zones of tax coordination or fiscal integration with a common budget and so on.
Keynote speaker: Enrico Spolaore, Tufts University.

Against the background of the fervently discussed reform of the Eurozone, this Joint EconPol-ZEW Lunch Debate will consider a number of questions. These include: Creating an EMU reform package that not only makes economic sense but which both Northern and Southern Europe can agree on; finding a way to effectively combine stabilising elements with elements that ensure a certain degree of self-reliance; precisely defining the responsibilities of a potential European Finance Minister; determining the main priorities of a Eurozone budget.

Speakers: Friedrich Heinemann (ZEW), Paulina Dejmek-Hack (European Commission), Roberto Tamborini (University of Trento), Hans Vijlbrief (President of the Eurogroup Working Group)