Two decades on from the break-up of Czechoslovakia: Departures, diversions and destinations. CEPS Commentary, 7 March 2013

Twenty years after the split of Czechoslovakia, expert analysts from the Czech Republic, Slovakia and the UK shed light on the political geography of this part of Central Europe in an extended three-part Commentary. The end points in the Euro-Atlantic integration processes of the successor states may be similar, argue the authors, but the journeys have been very different. Recent experience would suggest that in terms of EU politics, the Slovaks will be rather passive whilst the Czechs might be a little more troublesome. On the domestic front, the political discourse and competition in both states will largely revolve around the question of competence and corruption.

The ECB’s QE: Time to break the doom loop between banks and their governments. CEPS Policy Brief No. 328, March 2015

The recent crises have shown that the eurozone countries’ government debt is not immune to default. Applying a large-exposure requirement also to eurozone government debt would be a logical measure towards breaking the bank-government doom loop, given the low probability and high loss-given government default. But what would be the impact of the application of the large-exposure requirement on the banking sector as well as on government funding? This CEPS Policy Brief presents the results of a simulation exercise performed for 109 systemic banks in the eurozone, showing that their eurozone government debt portfolios would have to decrease by 3.2% or €63 billion, if a 50% of own-funds cap would be applied on large exposures. The eurozone central banks’ demand for sovereign bonds under the extended asset purchase programme further creates momentum to start gradually implementing the restriction.

Can Spain break the curse of the periphery? The upcoming Spanish election and what it means for Europe. CEPS Essay No. 24, May 2016

In this CEPS Essay, Miroslav Beblavý takes stock of the changing situation in Spanish politics one month before the early elections, which are expected to take place on June 26th in the hope that a new government can finally be formed. He finds that in both in politics and in economics, Spain resides at an immensely important inflection point situated between the European periphery and its core.