Daniel Gros

Karel Lannoo

The authors predict that the impact will be far-reaching, leading to a more liquid, mature and efficient capital market. The structure of capital markets in Europe and the behaviour of actors in these markets will be fundamentally affected, leading to a more integrated market. For monetary union to achieve its real objective, policy makers will need to address a wide variety of outstanding issues, in particular the taxation of savings income, accounting standards, capital market regulation and financial supervision. The start of monetary union on 1 January 1999 launched a process of radical change in the structure of capital markets in Europe. Whereas previously, Europe had been fragmented into many diverse national markets, a single Euro capital market is now emerging. This book focuses on the long-term impact that the introduction of the euro will have on European capital markets and spells out implications for the financial sector and the wider economy. It discusses what further steps need to be taken to achieve a fully integrated market. In particular, the book examines: * The institutional and regulatory framework for European capital markets * The structure of European capital markets on the eve of EMU * The regional differences and the contrasts with the US capital market * The central role played by banks in European capital markets and the likelihood that a more market-based system may emerge * The implications of EMU for organised securities markets * The consequences for governance and policy, and more in particular for the taxation of savings income, securities market regulation and financial supervision

The Euro Capital Market

This paper presents a simple, basic model to compute the welfare consequences of the introduction of a tariff on the CO2 content of imported goods in a country that already imposes a domestic carbon tax. The main finding is that the introduction of a carbon import tariff increases global welfare (and not just the welfare of the importing country) if there is no (or insufficient) pricing of carbon abroad. A higher domestic price of carbon justifies a higher import tariff. Moreover, a higher relative intensity of carbon abroad increases the desirability of high import tariff imposed by the home country because a border tax shifts production to the importing country, which in this case leads to lower environmental costs.

Global Welfare Implications of Carbon Border Taxes

"This special report by the CEPS Macroeconomic Policy Group (MPG) is concerned with the implementation of the prohibition of excessive deficits contained in the Treaty of Maastricht via the Stability and Growth Pact. Specifically, it deals with the controversy that was provoked by the failure of the ECOFIN Council of 25 November 2003, to endorse recommendations of the European Commission to put France and Germany on notice that they had violated the Treatys prohibition of excessive deficits"--CEPS website.

a special report of the CEPS Macroeconomic Policy Group

The nine lives of the stability pact

Michael Emerson

Alexander Italianer

This book provides a much-needed accessible and non-technical account of a highly topical issue - European Monetary Union. It is a coherent and authoritative statement of the view of the Commission of the European Communities by its chief economist. The book has already been written about in the Financial Times, and it should attract much media attention on publication.

Daniel Gros

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