Report on financial stability.

At the Informal Ecofin of 11 September 1999 in Turku, ministers and governors agreed to ask the Economic and Financial Committee to check whether the existing regulatory and supervisory structures in the EU can safeguard financial stability, particularly in the context of a rapidly changing financial environment. For this purpose, an ad hoc working group, chaired by the Dutch Deputy Governor Henk Brouwer prepared this report on financial stability under the aegis of the EFC. The organisation of the report is as follows. Section II contains the main conclusions (assessment). The rest of the paper examines the impact of the major financial trends on the stability of the financial system in Europe (section III), as well as the arrangements in the EU aimed at safeguarding financial stability. These arrangements can be divided into two main groups: the first one covers regulations (section IV) and supervisory structures (section V), which are primarily directed at preventing financial instability. The second group of arrangements consists of various types of crisis management, such as liquidity support to individual institutions or to the market as a whole (section VI).efc, economic and financial committee, financial, stability

Information and Financial Crisis Policymaking

The degree to which governments intervene to contain financial crises varies considerably. We aim to understand why policymakers choose the level of intervention they do to contain financial shocks. In particular, we want to understand why policymakers may choose policies that create outcomes they do not want. We focus on a defining feature of financial crisis policymaking that has been largely unaddressed in the literature on policy responses to crises: policymakers lack good information about the health of their banking systems. So, they rely on their bureaucrats and other actors for necessary information. However, information providers may have different policy preferences. To understand the interactions between these actors and the implications for policy choice, we advance a signalling game of financial crisis containment. We use comparative statics and a case study of the recent Irish crisis to demonstrate how information asymmetries can have a significant impact on bailout choices

Vade mecum on the Stability and Growth Pact

This document is the third issue of the Vade mecum published for the first time in May 2013 with the aim of improving transparency of the way the Commission applies the rules of the Stability and Growth Pact (SGP). It presents the relevant procedures and methodologies designed for implementing the SGPEste documento es el tercer número del Vademécum publicado por primera vez en mayo de 2013 con el objetivo de mejorar la transparencia de la forma en que la Comisión aplica las normas del Pacto de Estabilidad y Crecimiento (PEC). Presenta los procedimientos y metodologías pertinentes para la aplicación del PEC