Greek PM aide comments on lazy PhD holders causes turmoil

A widespread concern about negative policy rates is that they might depress bank profits and encourage risk-taking. We find that the impact of negative rates per se is limited. Other policy measures (TLTROs, tiered deposits) have largely neutralised the impact of NIRP on bank profits. Asset purchases might have been more important by compressing the yield curve. Any small positive impact of negative rates on lending and aggregate demand may have been swamped by the negative impact of low rates on productivity.
This paper was provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the committee on Economic and Monetary Affairs (ECON) ahead of the Monetary Dialogue with the ECB President on 21 June 2021.

Source : © European Union, 2021 – EP

Several central banks, including the European Central Bank since 2014, have added negative policy rates to their toolboxes after exhausting conventional easing measures. It is essential to understand the effects on the economy of prolonged negative rates. This paper explores the potential effects (and side effects) of negative rates in theory and examines the evidence to determine what these effects have been in practice in the euro area.
This paper was provided by the Policy Department for Economic, Scientific and Quality of Life Policies at the request of the committee on Economic and Monetary Affairs (ECON) ahead of the Monetary Dialogue with the ECB President on 21 June 2021.

Source : © European Union, 2021 – EP

The pricing of many financial instruments and contracts depends on the accuracy and integrity of (financial) benchmarks, i.e. indices, by reference to which the amounts payable under such financial instruments or contracts, or the value of certain financial instruments, are determined. The anticipated discontinuation of such a benchmark (LIBOR) after the end of 2021 has created fears that it could lead to disruption in the internal market, given that the Benchmarks Regulation ((EU) 2016/1011) does not provide for mechanisms to organise the orderly discontinuation of systemically important benchmarks in the EU. That is why the Commission has proposed to amend the said regulation. The co-legislators significantly amended the Commission’s proposal. Their amendments deal, among other things, with the replacement of a benchmark by EU, or by national law, set additional obligations for supervised entities using a benchmark, regulate the Commission’s powers to adopt delegated acts and establish additional obligations for the Commission with regards to its proposed consultation. The European Parliament adopted the compromise agreement in plenary on 19 January 2021. On 2 February 2021, the Council adopted the act. The final act was published in the Official Journal of the EU on 12 February 2021. Second edition. The ‘EU Legislation in Progress’ briefings are updated at key stages throughout the legislative procedure.

Source : © European Union, 2021 – EP

Ministers will announce on Monday whether to proceed with the final step of removing all remaining legal limits on social contact on 21 June amid growing speculation that what the UK press has dubbed “freedom day” will be delayed by…

While the pandemic is primarily a physical health crisis, it has also had widespread impact on people’s mental health, inducing, among other things, considerable levels of fear, worry, and concern. The growing burden on mental health has been referred to by some as the ‘second’ or ‘silent’ pandemic. While negative mental health consequences affect all ages, young people, in particular, have been found to be at high risk of developing poor mental health. Specific groups have been particularly hard hit, including health and care workers, people with pre-existing mental health problems, and women. The pandemic has also appeared to increase inequalities in mental health, both within the population and between social groups. To address the population’s increased psycho-social needs, the World Health Organization Regional Office for Europe established an expert group on the mental health impacts of Covid-19 in the European region. The Organisation for Economic Co-operation and Development has issued analyses and guidance on mental health in general and the pandemic’s impact on mental health in particular. At European Union level, a December 2020 European Commission communication addressed the pandemic’s impact on mental health. In May 2021, the Commission organised a major online stakeholder event, and published best practice examples of solutions presented. A July 2020 European Parliament resolution recognises mental health as a fundamental human right, calling for a 2021-2027 EU action plan on mental health. Members of the European Parliament have also called on the Commission to put mental health at the heart of EU policymaking. Stakeholders broadly rally around calls for programmes and funding to improve citizens’ mental health, not least to respond to the pandemic’s long-term implications.

Source : © European Union, 2021 – EP