A Life Cycle Approach to Investor Protection. ECMI Working Paper No. 1/September 2014

The market for investment products, including both securities and investment funds, is fraught with difficulties for consumers in terms of the ease of comparing products, trust in suppliers and consumer satisfaction. A comprehensive approach to investor protection, developed around the lifecycle of a financial product, may offer the investor greater protection during an investment’s life span. This paper proposes a new approach to investor protection, building on a review of major market failures affecting the origination, distribution and sale of financial products and based on a review of the relevant scientific literature and country experiences. The application of a ‘know-your-product’ principle at origination, a narrower ‘default rule’ for best execution and an ex-ante distinction between advice and ‘information-only’ services are among the options discussed in this paper to enhance the investor protection framework over the lifecycle of a financial product.

Promoting the agenda for a social Economic and Monetary Union: Attention, credibility and coalition-building. Bruges Political Research Paper No. 37, November 2014

In the aftermath of the crisis, new instruments of economic governance have been adopted at the EU level. Until recently, these have been strongly dominated by what I assume to be the ECFIN coalition. However, at least since 2011, this coalition’s supremacy has been challenged by the competing coalition’s (EPSCO) willingness to rebalance the economic governance so that social concerns are better taken into account. Hence, drawing on the agenda-setting literature in the EU context, this working paper aims at retracing the process that has led to put this issue of the social dimension of the EMU on to the EU political agenda. Three hypotheses are made concerning the rise of this issue, the strategies employed by agenda-setters, and the policy subsystem of the economic governance. First, this study shows that the interest in this issue has been gradually fostered ‘from below’, at the level of the European Parliament and the European Commission. Second, due to its ‘high politics’ nature, this issue could only be initiated ‘from above’ (European Council) and then expanded to lower levels of decision-making (Commission). Specifically, DG EMPL has managed to attract attention to this issue and to build its credibility in dealing with it by strategically framing the issue and directing it towards the EPSCO venue. Finally, I analyze the outcome of this agenda-setting process by assessing to what extent the two new social scoreboards which form part of this social dimension have been taken into account during the 2014 European semester. The result of this analysis is that the new economic governance has not been genuinely rebalanced insofar as its dominant policy core remains that of the ECFIN coalition.

Investor-State Dispute Resolution as an Issue in Transatlantic Trade Negotiations: Lessons from NAFTA. Jean Monnet/Robert Schuman Paper Series Vol. 15 No. 3, August 2015

A major issue in the ongoing Transatlantic Trade and Investment Partnership (TTIP) negotiations is investor-state dispute resolution as it relates to foreign investments. The United States would like to have strong investor protections similar to those of the North American Free Trade Agreement (NAFTA) included in the TTIP agreement. Civil society groups on both sides of the Atlantic object to binding arbitration of investment disputes, fearing that arbitration awards could endanger environmental and other types of regulations. This paper examines the experience with investor-state dispute resolution under NAFTA to determine whether judgments rendered in these cases have had adverse effects.