Collateral Easing with Disciplinary Dysfunction?

Policy Brief

24/06/2020

On the limitations of the ECBs COVID19 response

The COVID-19 crisis caused stress in European sovereign debt markets. The potential impact on euro resilience of rapidly increasing spreads on Italian government bonds gave rise to particular concern. The ECB’s response – ranging from the Pandemic Emergency Purchases Programme (PEPP) to several rounds of easing of its collateral policy – has been praised for quickly stabilizing government bond markets and ameliorating euro resilience concerns.

But it may not last.

As has often before been the case, the ECBs crisis response seeks to strike a balance between liquidity provision and risk control, but measures launched in the name of the latter threatens to undermine the former. From a financial stability perspective, it would be commendable if the ECB temporarily suspended key elements of its margining practices in credit operations, notably its practices of haircut differentiation and daily margin calls.

Read the FEPS Covid Response Paper

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Toward a progressive geopolitical EU

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How can RepowerEU consolidate recovery?

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Progressive ideas to make international trade successful for all

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Strengthening territorial cohesion and  the single market

08/05/2024

A good jobs compass for the internal market: creating its human face for the mid-21st century

08/05/2024

On the dangers of promoting scale in the name of competitiveness

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Upcoming
21/05/2024
Expert meeting, FEPS HQ

Social Europe in the new EU Economic Governance framework

Integrating social investment & social policy actors
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01/05/2024
Budapest, Hungary

Taxing the richest in the EU

For a just, social and green transition in Hungary
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Bratislava, Slovakia

Social and environmental justice in the EU

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18/01/2024

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Tax the rich

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In the media

Ласло Андор: Европа трябва да създаде нов модел за икономически растеж

by dir.bg 14/03/2024
'Europe must create a new model for economic growth'. Interview by Laszlo Andor, FEPS Secretary General

FEPS President at Euronews talk-show ‘Brussels, my love?’

by Euronews 15/01/2024
Panellists discussed topics including EU fiscal rules reform, German farmer's protests, and the decision of Charles Michel to quit his job early to run for MEP.

“Trade doesn’t work in isolation from good domestic policies” Interview to Arancha González

by Borderlex 19/09/2023
Interview to Arancha González, former Spanish foreign minister, who released together with FEPS the new book entitled 'The Trade Handbook: Making Trade Work for Prosperity, People and Planet'

A szociális unió imperatívusza

by Új Egyenlőség 09/09/2023
'The imperative of Social Union'. Article about FEPS book 'Europe’s Social Integration: Welfare Models and Economic Transformations' by László Andor.