Nicolas Veron

Nicolas Veron is a senior fellow at Bruegel in Brussels and a visiting fellow at the Peterson Institute for International Economics in Washington, DC.
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A New European Financial Landscape Is Emerging

The United Kingdom’s exit from the European single market on January 1 has sent trade in goods plummeting amid much confusion. By contrast, Brexit was carried out in an orderly manner in the financial sector, despite significant movement of trading in shares and derivatives away from the City of London. The Brexit Deal Presents Opportunities for a New... Continue Reading

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The Wirecard Debacle Calls for a Rethink

Wirecard AG, the Munich-based payments and financial services company that was a member of the DAX index of Germany’s 30 leading blue-chip stocks, collapsed spectacularly and filed for insolvency on June 25. Among many lessons, this disaster has revealed major gaps in audit regulation and accounting enforcement in Germany and, by extension, in the European Union. Like in other... Continue Reading

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Banking Regulation in the Euro Area: Germany Is Different

Two reports published in early 2020 shed new light on this challenge. The European Central Bank’s (ECB) risk report on less-significant institutions is the first of what is intended to be an annual series. The impact assessment study on the most important differences between accounting standards used by banks in the banking union was prepared by legal consultants for the... Continue Reading

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Banks in Pandemic Turmoil

As the COVID-19 pandemic and policy reactions have disrupted markets, bankers on both sides of the Atlantic have called for the relaxation of accounting standards introduced in the wake of the 2007-08 global financial crisis. This set of standards is known as expected credit loss provisioning. These calls, like much bank lobbying on capital regulation, should be ignored by public... Continue Reading

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The IMF and the Euro Area Crisis

Paul Blustein’s book is an important addition to the burgeoning literature on the euro-area crisis, and its main contribution is to assemble essential factual material for further analysis. The International Monetary Fund’s involvement in the euro area crisis has raised a lot of controversy. According to a widespread conventional view, the “Troika” of creditor institutions—the... Continue Reading

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The UK-EU Separation: How Fast Does it Happen?

Up until the British rebuff on June 23, the EU had always been in expansion mode. The UK vote to leave the EU marks the first-ever case of this process being reversed. In the past, there have been a number of situations where a country could be outside the European Union (EU) legally, but inside politically. It was common practice in the early 2000s to invite ex-communist candidate... Continue Reading

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With Brexit, London Would Lose Business as a Global Financial Center

London could lose its status of a global financial hub if there is a Brexit. Who would win the business that the British capital would lose? There are multiple sub-scenarios in the aftermath of a Leave vote on June 23. In almost all of them, however, London would lose business as a global financial center. Part of its unmatched position as a hub for international financial services is linked... Continue Reading

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Europe’s Capital Markets Union and the New Single Market Challenge

Nicolas Véron comments on the Capital Markets Union Action Plan launched by the European Commission. In mid-July 2014, in his maiden policy speech at the European Parliament as president-elect of the European Commission, Jean-Claude Juncker promised to create a European “Capital Markets Union.” As he explained it: “To improve the financing of our economy, we should further develop and... Continue Reading

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Alibaba IPO Underlines Rise of Chinese Private Sector

For all the fashionable talk of China’s dominant state capitalism and “Guo Jin Min Tui,” the numbers tell a slightly different story. On September 5, Alibaba Group filed details about its forthcoming Initial Public Offering (IPO), suggesting a mid-range valuation of $155 billion. This would make the Hangzhou-based web retailer the most valuable listed private-sector company headquartered... Continue Reading

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Euro Crisis Turning Point: Two Years of Banking Union

Europe’s leaders avoided their usual muddling through complacency to do something radical — and it worked. Europe’s banking union, constituting a supranational pooling of most instruments of banking policy, was established over two years ago, in the early hours of June 29, 2012. To a greater extent than was initially realized by most observers, this step marked a watershed in the... Continue Reading

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