Building a Better Union: Incentivizing Structural Reforms in the Euro Area

IMF Working Papers, September 11, 2015

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Building a Better Union: Incentivizing Structural Reforms in the Euro Area

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Bibliographic details

• Authors: Angana Banerji, Bergljot B Barkbu, James A John, Tidiane Kinda, Sergejs Saksonovs, Hanni Schoelermann, Tao Wu
• Published: September 11, 2015
• Series: IMF Working Papers
• DOI: https://doi.org/10.5089/9781513517087.001

Summary and context

• Publication type: IMF Working Papers
• Authors: Angana Banerji, Bergljot B Barkbu, James A John, Tidiane Kinda, Sergejs Saksonovs, Hanni Schoelermann, Tao Wu
• Date: September 11, 2015
• Core problem identified:
  • The momentum for structural reforms is waning in the euro area at a time when even faster progress is needed to boost productivity and growth, achieve real economic convergence, and improve the resilience of the monetary union.
• Central argument:
  • The paper argues for greater simplicity, transparency and accountability in the EU governance framework for structural reforms.

Key findings

• Need for faster structural reform to:
  • Boost productivity and growth.
  • Achieve real economic convergence.
  • Improve resilience of the monetary union.
• Current EU governance framework issues identified:
  • Lack of simplicity.
  • Lack of transparency.
  • Insufficient accountability.
• Proposed institutional roles:
  • Ex post monitoring by an independent EU-level “structural council”.
  • Ex ante policy innovation by national productivity councils.

Policy proposals and recommendations

• Three interrelated proposals to advance reforms:
  • “Outcome-based” benchmarking.
  • Better use of existing EU processes to strengthen oversight and reduce discretion.
  • Improved financial incentives.
• Institutional design recommendations:
  • Create an independent EU-level “structural council” to conduct ex post monitoring.
  • Encourage national productivity councils to undertake ex ante policy innovation.
• Longer-term governance advice:
  • Consider deeper governance reforms in the medium-term with a view toward a greater EU role in promoting convergence.

Subjects and keywords (as provided)

• Subject: Economic integration, EU governance framework, Fiscal policy, Labor, Labor taxes, Macrostructural analysis, Monetary unions, Structural reforms, Taxes
• Keywords: EU country, EU governance framework, EU governance reform, EU institution, EU legislation, EU Policy coordination, Europe, European economic governance, European Union, Global, Labor taxes, Monetary unions, single market, Structural reform, Structural reforms, WP

Publication and metadata

• Pages: 41
• Volume: 2015
• Issue: 201
• Series: Working Paper No. 2015/201
• DOI: https://doi.org/10.5089/9781513517087.001
• Stock No: WPIEA2015201
• ISBN: 9781513517087
• ISSN: 1018-5941

IMF Working Paper: "Building a Better Union: Incentivizing Structural Reforms in the Euro Area", September 11, 2015.

Content in this bundle

• 1. Financial Sanctions Within The Governance Framework
  • 1. Financial Sanctions Within The Governance Framework (Markdown version)
  • 1. Financial Sanctions Within The Governance Framework (PDF)