Italy’s banking problem has been left unaddressed for too long. Similar to Japan in the 1990s, it is best understood as a combination of structural and cyclical factors. Most of Italy’s banks, many of which are small and local, have politicized governance features that blur commercial incentives. As a consequence, they were unable to rein in their lending during the downturn of the late 2000s. Many of these loans turned sour in subsequent years and local connections prevented the banks from...

On 15 December 2016, Europe's satellite navigation system Galileo will start offering its initial services to public authorities, businesses and citizens. Commission Vice-President Maroš Šefčovič, responsible for the Energy Union, said: "Geo-localisation is at the heart of the ongoing digital revolution with new services that transform our daily lives. Galileo will increase geo-location precision ten-fold and enable the next generation of location-based technologies; such as autonomous cars, connected devices, or smart city services. Today I call on European entrepreneurs and...

There are several rumors of what we have to expect from US trade policy starting in January. US President-elect Donald Trump has mentioned that he wants to impose a 35% tariff on Chinese imports, re-negotiate or pull out of NAFTA, and withdraw from TPP. This week, we take a look at the powers of the US president when it comes to trade agreements and tariffs. What is possible, impossible?     Impose a tariff on imports: Yes, but only for 150 days...

There are several rumors of what we have to expect from US trade policy starting in January US President-elect Donald Trump has mentioned that he wants to impose a 35% tariff on Chinese imports, re-negotiate or pull out of NAFTA, and withdraw from TPP. This week, we take a look at the powers of the US president when it comes to trade agreements and tariffs. What is possible, impossible? Impose a tariff on imports: Yes, but only for 150 days and only...

The European Investment Bank (EIB) will support the construction of the Norther wind farm off the Belgian coast with a loan of EUR 438 million. Half of this amount will be guaranteed under the European Fund for Strategic Investments (EFSI), the heart of the Juncker Commission’s Investment Plan for Europe. Norther is the third wind project off the Belgian coast to be supported under the EFSI. Upon completion, its 44 wind turbines will deliver an estimated 352 MW*, enough to...

Addressing the European Parliament on the day before the European Council, President Juncker set out the priorities of the meeting: the refugee crisis, defence, the investment plan, the European Solidarity Corps and foreign affairs. Addressing the European Parliament on the day before the European Council on 15 December 2016, President Juncker highlighted the progress made by the European Union on refugee crisis management: greater shared responsibility of our common borders with the setting up of the Border Guard, the implementation...

Martin Schulz stressed the importance of cooperation and solidarity in his last speech as Parliament President at a European Council meeting. Addressing heads of government at the summit in Brussels, he called on them to make progress on issues such as defence, migration and Russia. “You all agreed that you need the EU, that the EU is the only means to tackle the challenges we are facing in this century. This spirit should never be forgotten and should guide...

An International Monetary Fund (IMF) mission visited Dublin during November 29—December 2, 2016, for the sixth post-program monitoring discussions—part of the IMF’s regular surveillance of countries with significant IMF credit outstanding. The mission was coordinated with the European Commission and the European Central Bank. At the end of the visit, the mission issued the following statement: The Irish economy is growing at a healthy pace, but remains subject to downside risks. Commendable progress has been achieved through a long and...