Bank versus non-bank credit in the United States, Europe and China. Bruegel Policy Contribution, 2012/07, 5 June 2013

In the wake of recent crisis developments in the US and Europe, non-bank credit channels have often been portrayed as 'shadow banking' and have been considered primarily through the lens of the risks they may pose to financial stability. However, the debate about financial system structures remains immature, in large part due to lack of reliable and comparable data. The available evidence actually points towards a correlation between the development of non-bank credit and higher resilience against systemic risk, at least in developed economies. Policy should aim at better statistical information, and at strengthening the infrastructure for the gradual development of sustainable nonbank credit provision.

The start-up fund - an elegant treaty mechanism for sustaining defence capabilities. Security Policy Brief No. 48, June 2013

When the European Council meets in December, it will face a range of decisions which will lay the foundations for Europe's defence posture and role in the wider world for decades to come, perhaps even beyond the remainder of this century. The Lisbon Treaty has, for the first time, equipped the EU with the range of means to meet that role in practice. The question that remains to be answered is whether Europe's leaders have the political will to implement those means in full.