Developing an Analytical Framework on Social Cohesion in Singapore. Reflections from the framing of social cohesion debates in the OECD and Europe. EU Centre Singapore Working Paper No. 17, November 2013

Official discourse in Singapore on social cohesion is often framed along the broad parameters of achieving racial and religious harmony. Many policies – formal and informal – and several laws evolved to manage these two aspects of society. Yet, as Singapore developed and with a much more complex socioeconomic environment both domestically and externally, there is perhaps a need to re-look the discourse and framework for discussing social cohesion. This paper takes a critical look at how the issue of social cohesion is framed in academic literature and policy discussions in Europe and the OECD, and tries to develop a broader analytical framework that could be useful in the Singapore context as it struggles with the multiple fault lines in society (beyond race and religion) that have emerged in the last decade or so.

Framing Banking Union in the Euro Area: Some empirical evidence. CEPS Working Document No. 389, 3 February 2014

Evidence shows that financial integration in the euro area is retrenching at a quicker pace than outside the union. Home bias persists: Governments compete on funding costs by supporting ‘their’ banks with massive state aids, which distorts the playing field and feeds the risk-aversion loop. This situation intensifies friction in credit markets, thus hampering the transmission of monetary policies and, potentially, economic growth. This paper discusses the theoretical foundations of a banking union in a common currency area and the legal and economic aspects of EU responses. As a result, two remedies are proposed to deal with moral hazard in a common currency area: a common (unlimited) financial backstop to a privately funded recapitalisation/resolution fund and a blanket prohibition on state aids.