Euro Area Policies: 2011 Article IV Consultation-Staff Report; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Member Countries
IMF Staff Country Reports, July 18, 2011
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- Euro Area Policies: 2011 Article IV Consultation-Staff Report; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Member Countries
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Bibliographic details
- Published: July 18, 2011
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781462339556.002
Overview
- Publication date: July 18, 2011
- Format: IMF Staff Country Reports (Country Report No. 2011/184)
- Length: 49 pages
- Core focus: Analysis of risks related to the euro area sovereign debt crisis; review of mechanisms and institutional frameworks for financial reforms and macroprudential policies; discussion of fiscal and structural governance improvements; findings from spillover analysis.
Major findings and analysis
- Risks related to the euro area sovereign debt crisis are analyzed.
- Methods used to implement the European Financial Stability Facility (EFSF) are overviewed.
- The European Stability Mechanism (ESM), the European Systemic Risk Board (ESRB), and the European Supervisory Authority (ESA) are identified as important frameworks for financial reforms and macroprudential policies.
- Improvement over the fiscal and structural governance stability and growth pact (SGP) and excessive deficit procedure (SDP) is discussed.
- Findings of spillover analysis are outlined.
Policy implications and recommendations (as presented)
- Implement and use EFSF mechanisms to address sovereign stress.
- Establish and operationalize the ESM as a framework for financial stability support.
- Strengthen ESRB and ESA roles to support macroprudential policy and financial reforms.
- Improve fiscal and structural governance through reforms to the SGP and SDP.
- Consider spillover effects in euro area policy design and coordination.