European Stability Mechanism
6a, Circuit de La Foire Internationale
L-1347 Luxembourg
& online via Microsoft Teams
Geopolitical volatility and risks are on the rise. These risks can materialize with shocks to key economic variables, such as terms of trade, external or domestic demand, or market confidence, affecting economic growth, borrowing conditions, public revenue and spending, and ultimately public debt. In an increasingly power-driven global landscape, Europe must assume greater responsibility for its own security and strategic interests. Building resilience to shocks, reducing external dependencies, modernising production and investing in defence come on top of existing long-term challenges such climate change and population aging. To address these challenges Europe needs more agile institutions, better coordination in research and innovation, and stronger government support. At the same time, debt levels are already high and borrowing costs well above those seen until before the 2021-22 inflation surges.
Organising committee: Ernest Gnan (SUERF), Giovanni Callegari, Ermal Hitaj, Silvia Calò (ESM)
European Security – Guns, Butter, and Public Debt
Ricardo Reis, A. W. Phillips Professor of Economics · London School of Economics and SUERF FellowTrade Disruptions and Fiscal Sustainability
Era Dabla Norris, Deputy Director, Fiscal Affairs Department · International Monetary Fund (IMF)Spending on the frontline: The macroeconomic implications of geopolitical upheaval
Daragh Clancy, Central Bank of IrelandCo-author(s): Matija Lozej
Buy Guns or Buy Roses? EU defence spending fiscal multipliers
David Sarasa Flores, BBVA ResearchCo-author(s): Agustín García Serrador, Camilo Ulloa Ariza
Funded and unfunded fiscal shocks – inflation dynamics in the Euro Area
Francesco Bianchi, Johns Hopkins UniversityCo-author(s): Giovanni Callegari, Ermal Hitaj, Konstantinos Theodoridis
The need of a resilient self-enforcing fiscal design: a financial stability fund with fund contracts
Ramon Marimon, European University Institute (EUI)The fund, private bond markets and the central bank: EU safe assets and an effective lender of last resort
Adrien Wicht, University of BaselThe Fund vs/and SGP Fiscal Rules: making fiscal rules credible and more efficient
Luca Zavalloni, European Stability Mechanism (ESM)Co-author(s): Giovanni Callegari
