IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/53696.html
   My bibliography  Save this paper

Towards Europe 2020 out of the economic crisis: is the Project Bond Initiative a means to financial stability and integration?

Author

Listed:
  • Kavvadia, Helen

Abstract

Since the establishment of the single monetary policy and introduction of the euro, it is pertinent to investigate the link between financial stability and integration. Is there a complementarity between the two or are financial stability and integration a contradiction in terms? In other words, isn’t a search for a highly integrated financial system that would strengthen stability a bit like a search for the Holy Grail? Investment has been the cementing element of EU integration, institutions and policies – in brief, in creating more Europe. More concretely, investment in people, in knowledge and in physical assets, to ensure that Europe preserves its role and position in the world. The current crisis transcends national, even continental borders. Europe is reminded of its severity on a daily basis. Record unemployment is one of the consequences; shrinking public budgets and financial austerity another. In the run-up to the current recession investment grew by 5-6% a years. Exporters and home buyers drove this expansion, which ended in 2008. Since then, the lack of investment has been a main source of demand weakness in the European Union. A collapse of investment activity of this magnitude has inevitable repercussions for economic expansion in the longer term. If productive capital stocks do not grow – indeed, if they are not even maintained - EU growth potential will inevitably shrink. A revival of investment activity is therefore crucial to the long-term growth prospects of Europe. One precondition for such an investment revival is access to reasonably priced funding for long-term projects. The process of fiscal consolidation at national and European level has already placed a severe restriction on public budgets – and will continue to do so in the medium term. This pressure means that the EU has to find ways to achieve more with less. In particular, at European level, one needs to ensure that a limited EU budget is used to maximum effect. The newly established EU project bond initiative is seen as a means to go ahead in the current circumstances. As it does not impose an additional burden on domestic budgets, sovereign debt or contingent liabilities. The review looks into the type of investment that can be catered by the project bond initiative and the sectors selected for magnifying the growth potential.

Suggested Citation

  • Kavvadia, Helen, 2012. "Towards Europe 2020 out of the economic crisis: is the Project Bond Initiative a means to financial stability and integration?," MPRA Paper 53696, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:53696
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/53696/1/MPRA_paper_53696.pdf
    File Function: original version
    Download Restriction: no

    File URL: https://mpra.ub.uni-muenchen.de/65257/1/MPRA_paper_53696.pdf
    File Function: revised version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Carmignani, Fabrizio, 2007. "A note on income converge effects in regional integration agreements," Economics Letters, Elsevier, vol. 94(3), pages 361-366, March.
    2. Alexiadis Stilianos & Christos Ap. LADIAS, 2011. "Optimal Allocation Of Investment And Regional Disparities," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 45-59, December.
    3. Kokko, Ari & Gustavsson, Patrik, 2004. "Regional integration, foreign direct investment, and regional development," EIB Papers 5/2004, European Investment Bank, Economics Department.
    4. Kavvadia, Helen, 2009. "European Integration and the Peripheral Disparities in Greece. The way ahead," MPRA Paper 38356, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dimitrios TSIOTAS & Nikolaos AXELIS & Serafeim POLYZOS, 2022. "Detecting City-Dipoles In Greece Based On Intercity Commuting," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 11-30, June.
    2. Dorożyński, Tomasz & Dorożyńska, Agnieszka & Urbaniak, Wojciech, 2014. "The role of local government units in attracting FDI: The case of the Lodz Region," Business and Economic Horizons (BEH), Prague Development Center (PRADEC), vol. 10(4), pages 1-24.
    3. Tomasz Dorozynski & Agnieszka Dorozynska & Wojciech Urbaniak, 2014. "The role of local government units in attracting FDI. The case of the Lodz Region," Business and Economic Horizons (BEH), Prague Development Center, vol. 10(4), pages 281-304, November.
    4. Catherine Figuière & Laëtitia Guilhot & Cyriac Guillaumin, 2013. "La question du régime de change en Asie de l'Est : Vers un bloc monétaire régional ?," Revue d'économie politique, Dalloz, vol. 123(2), pages 265-298.
    5. Anastasios SEPETIS & Dimitrios TSIRIGOTIS & Ioannis NIKOLAOU & Yannis MANIATIS, 2024. "Esg Integration In Evaluating And Financing Local Government: A New Prospects For Local Governments And Modern Societies," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 81-97, June.
    6. Amélie Charles & Olivier Darne & Jean-François Hoarau, 2012. "Convergence of real per capita GDP within COMESA countries: A panel unit root evidence," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 49(1), pages 53-71, August.
    7. Daniela- Luminița CONSTANTIN & Corina- Cristiana NASTACĂ & Emilia GEAMBASU, 2021. "Population Accessibility To Rail Services. Insights Through The Lens Of Territorial Cohesion," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 81-98, June.
    8. Tomasz Dorozynski & Agnieszka Dorozynska & Wojciech Urbaniak, 2015. "The role of local government units in attracting FDI. The case of the Lodz Region," Business and Economic Horizons (BEH), Prague Development Center, vol. 10(4), pages 281-304, January.
    9. Libman, Alexander, 2008. "Federalism and regionalism in transition countries: A survey," MPRA Paper 29196, University Library of Munich, Germany.
    10. Amitrajeet A. BATABYAL & Seung Jick YOO, 2022. "A Theoretical Analysis Of Costs, Waste Treatment, Pollution In The Ganges, And Leather Production By Tanneries In Kanpur, India," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 47-53, June.
    11. Sklias, Pantelis & Tsampra, Maria, 2012. "Towards an analytical framework of regional integration in Western Balkans," MPRA Paper 36504, University Library of Munich, Germany.
    12. Zheng Ying & Chang-Rui Dong & Hsu-Ling Chang & Chi-Wei Su, 2014. "Are Real GDP Levels Stationary in African Countries?," South African Journal of Economics, Economic Society of South Africa, vol. 82(3), pages 392-401, September.
    13. Vasileios PAPADIMITRIOU & Serafeim POLYZOS & Dimitrios TSIOTAS, 2023. "Renewable Energy Project Appraisal Using The Real Options Methodology," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 85-96, June.
    14. Serge Rey & Florent Deisting, 2012. "GDP per Capita among African Countries over the Period 1950–2008: Highlights of Convergence Clubs," Economics Bulletin, AccessEcon, vol. 32(4), pages 2779-2800.
    15. Amélie Charles & Olivier Darné & Jean-François Hoarau, 2009. "Does the real GDP per capita convergence hold in the Common Market for Eastern and Southern Africa?," Working Papers hal-00422522, HAL.
    16. Filipos RUXHO & Christos Ap. LADIAS, 2022. "Increasing Funding For The Regional Industry Of Kosovo And The Impact On Economic Growth," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 117-126, June.
    17. Daniela- Luminița CONSTANTIN & Corina- Cristiana NASTACĂ & Emilia GEAMBASU, 2021. "Population Accessibility To Rail Services. Insights Through The Lens Of Territorial Cohesion," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 81-101, June.
    18. Buła, Rafał, 2014. "Zjawisko konwergencji w krajach Karaibskiej Wspólnoty i Wspólnego Rynku [Convergence among CARICOM economies]," MPRA Paper 59709, University Library of Munich, Germany.
    19. Sokolovskyi, Dmytro, 2018. "The factors inefficient allocation of investment between economies," MPRA Paper 87032, University Library of Munich, Germany.
    20. Matonana, Ntombiyesibini & Phiri, Andrew, 2024. "Who in the World can Africa Catch-up to? Evidence from Income Convergence Analysis," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 77(3), pages 417-444.

    More about this item

    Keywords

    Europe 2020; economic crisis; Project Bond Initiative; financial stability; financial integration;
    All these keywords.

    JEL classification:

    • M0 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:53696. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.