Regional government and the "New Europe"

Introduction. Regional government in contemporary western Europe corresponds to a type of society and economy variously labeled "post-industrial", "post-bourgeois" or merely "the New Europe."l This New Europe evolved historically from the interconnected strands of capitalism; industrialism and pluralistic democracy. It resembles in many respects the type of economy and society familiar to us in North America. Regional government in such a society is thus merely an adaptation on the scale of half a continent of forms of social and economic organization which evolved historically at the national level. Regional government in the New Europe is the institutional and political recognition that societies have changed dramatically since 1945, so dramatically that they cannot be adequately described in the doctrines and ideologies made familiar by nineteenth and early twentieth century political thought. Hence the New Europe and its regional government is the future of that part of history which has also been aptly described as "the end of ideology."

A Proper Yield Curve for Greece to Kick-Start Financial Intermediation. ECMI Policy Brief No. 21, 10 December 2013

At present, the market is severely mispricing Greece’s sovereign risk relative to the country’s fundamentals. As a result of the mispricing, financial intermediation in Greece has become dysfunctional and the privatisation of state-owned assets has stalled. This mispricing is partially due to an illiquid and fragmented government yield curve. A well-designed public liability management exercise can lead to a more efficient pricing of Greece’s government bonds and thereby help restore stable and affordable financing for the country’s private sector, which is imperative in order to overcome Greece’s deep recession. This paper proposes three measures to enhance the functioning of the Greek government debt market: i) Greece should issue a new five-year bond, ii) it should consolidate the 20 individual series of government bonds into four liquid securities and iii) it should offer investors a swap of these newly created bonds into dollar-denominated securities. Each of these measures would be beneficial to the Hellenic Republic, since the government would be able to reduce the face value and the net present value of its debt stock. Furthermore, this exercise would facilitate the resumption of market access, which is a necessary condition for continuous multilateral disbursements to Greece.