How we all – consumers and businesses likewise – benefit from the Euro
The European Economic and Monetary Union (EMU) is an outstanding example of successful European integration. Since 1999, as many as 19 countries have been sharing the Euro and benefiting from a stable, internationally significant currency. The elimination of foreign exchange costs and exchange rate fluctuations invigorated trade within the EMU and brought considerable savings for businesses and individuals.
EU reflection paper on monetary union: strengthen the Eurozone
At the end of May 2017, the European Commission published its reflection paper on deepening of the European Economic and Monetary Union (EMU) in which it gave more concrete form and assigned priorities to the proposals in the 2015 Five Presidents’ Report. For German business, a strong and crisis-resistant Eurozone is essential for continuing growth and the creation of secure jobs.
European Commission’s proposals for reform of corporate taxation
In October 2016, the European Commission presented four draft directives for reform of corporate taxation. Core element is the introduction of a common consolidated corporate tax base (CCCTB) designed to facilitate cross-border activities of companies in the EU single market. However, at the same time, the proposal comprises some tightening of taxation rules. There are therefore doubts as to whether the advantages of the CCCTB outweigh the drawbacks for companies.
The European Central Bank (ECB) is the central monetary policy force in the European Economic and Monetary Union (EMU). The ECB’s primary duty is to ensure price stability. Using its monetary policy instruments, it aims for a rate of inflation of just under two percent. After that, the ECB’s mandate is to support economic policy in achieving a high rate of employment and lasting growth – as long as this does not jeopardise price stability. In addition, the ECB is responsible for ensuring the smooth operation and stability of Euro payment transactions.
The Five Presidents’ Report on completing Europe’s Economic and Monetary Union
The European Economic and Monetary Union (EMU) and the Euro, Europe’s shared currency, have created growth, prosperity and jobs for the citizens of the EU. However, the crisis and its aftermath have shown that the EMU is in need of fundamental reform. The Five Presidents’ Report published by the European Commission presents comprehensive proposals for completing the EMU.
- Lately, the window of opportunity for deepening the Economic and Monetary Union (EMU) has been cited repetitively. Proposals to use this momentum for structural reforms are well-known. But the time may have also come to take a closer look at the democratic accountability of the governance structure...
- The Banking Union (BU) is an essential part of the Economic and Monetary Union (EMU), as it decisively contributes to financial market stability and growth. Both aspects are of key importance for German industry. Still, the implementation of the elements of BU have advanced at different paces and...
- BDI Director General Joachim Lang warns: “German firms must prepare for the worst-case scenario of a very hard exit, anything else would be naïve.” The BDI set up a task force to identify potential and acute risks associated with the UK’s exit from the EU and to develop constructive solution...
- In recent years, we have seen a lot of efforts in the fiscal area. However, reforms for the general business environment have fallen short. Can benchmarks like the European Commission's country specific recommendations or the proposals of the Organisation for Economic Co-operation and Development...
Industry Calls for Maximum Damage Limitation During Brexit
- The extent of damage limitation in regards to the Brexit was largely the responsibility of the UK Government, BDI President Dieter Kempf said. Policy in Brussels and Berlin should have one common approach, namely holding together and strengthening Europe.
- The public had mixed reception on the White Paper on the Future of Europe. Jean-Claude Juncker, President of the European Commission, presented five different scenarios. However, he did not commit himself to one of them. At the third “Econ Jour Fixe” on 7 March 2017, Brussels economists from BDI,...