https://www.esm.europa.eu/publications/linking-bank-crises-and-sovereign-defaults-evidence-emerging-markets Download PDF: Working Paper 22 This paper studies the mechanisms through which bank and sovereign distress feed into each other, using a large sample of emerging market economies over three decades Authors: Irina Balteanu (Bank of Spain) and Aitor Erce (European Stability Mechanism) Abstract: We...

https://www.esm.europa.eu/publications/macroeconomic-effects-official-debt-restructuring-evidence-paris-club Download PDF: Working Paper 21 This paper finds that official-sector creditors face policy trade-offs for debt relief provision between growth, fiscal prudence and market access Authors: Gong Cheng, Javier Diaz-Cassou and Aitor Erce Abstract: This paper presents new empirical results on the...

https://www.esm.europa.eu/publications/debt-collection-relief-provision-60-years-official-debt-restructurings-through-paris Download PDF: Working Paper 20 Download dataset This paper shows how over 60 years the Paris Club has evolved from a debt collector to a provider of sequential debt relief Authors: Gong Cheng, Javier Diaz-Cassou and Aitor Erce Abstract: Despite the frequency of official debt restructurings, little...

https://www.esm.europa.eu/publications/public-finances-and-long-term-growth-europe-evidence-panel-data-analysis Authors: Diego Romero-Ávila and Rolf Strauch Abstract This paper addresses the question whether public finance reform can affect trend growth in the EU-15. Focusing on time series patterns, we investigate whether there have been persistent trends in economic growth and fiscal variables over the last...

https://www.esm.europa.eu/publications/design-fiscal-rules-and-forms-governance-european-union-countries Authors: Mark Hallerberg, Rolf Strauch and Jürgen von Hagen Abstract This paper uses a new data set on budgetary institutions in Europe to examine the impact of fiscal rules and budget procedures in EU countries on public finances. It briefly describes the main pattern of budgetary institutions and...

https://www.esm.europa.eu/publications/fiscal-policy-events-and-interest-rate-swap-spreads-evidence-eu Authors: Antonio Afonso and Rolf Strauch Abstract This paper assesses the importance given in capital markets to the credibility of the European fiscal framework. We evaluate to which extent relevant fiscal policy events taking place in 2002 produced a reaction in the long-term bond segment of...

https://www.esm.europa.eu/publications/fiscal-governance-europe Author: Mark Hallerberg, Rolf Strauch and Jürgen von Hagen Abstract: This book presents a theoretical framework to discuss how governments coordinate budgeting decisions. There are two modes of fiscal governance conducive to greater fiscal discipline, a mode of delegation and a mode of contracts...

https://www.esm.europa.eu/publications/highly-efficient-regression-estimator-skewed-andor-heavy-tailed-distributed-errors Download PDF: Working Paper 19 This paper introduces a regression model for extreme events that can be useful for financial market analysis and prediction Authors: Lorenzo Ricci, Vincenzo Verardi and Catherine Vermandele Abstract: This paper proposes a simple maximum likelihood regression estimator...

https://www.esm.europa.eu/publications/role-fiscal-transfers-smoothing-regional-shocks-evidence-existing-federations Download PDF: Working Paper 18 This paper assesses the extent to which fiscal transfers smooth regional shocks in three large federations: the US, Canada and Australia Authors: Tigran Poghosyan, Abdelhak Senhadji and Carlo Cottarelli | International Monetary Fund Paper presented at ADEMU (A Dynamic...

https://www.esm.europa.eu/publications/international-risk-sharing-emu Download PDF: Working Paper 17 This paper demonstrates that the adoption of the euro has not increased the ability of Member States to smooth consumption. Authors: Alessandro Ferrari and Anna Rogantini Picco | European University Institute, Florence Paper presented at ADEMU (A Dynamic Economic and...

https://www.esm.europa.eu/publications/bailouts-moral-hazard-and-banks%E2%80%99-home-bias-sovereign-debt Download PDF: Working Paper 16 This paper shows that an increase in banks’ holdings of domestic sovereign debt decreases the ability of domestic sovereigns to successfully enact bailouts. Authors: Gaetano Gaballo | Banque de France Ariel Zetlin-Jones | Tepper School of Business Paper presented at...

https://www.esm.europa.eu/publications/firm-performance-and-foreign-debt-financing-and-during-crisis-evidence-firm-level-data Download PDF: Working Paper 15 This paper finds that foreign debt financing improved firm performance and mitigated the adverse effects of leverage for moderately leveraged firms in Slovenia before and during the recent crisis. Authors: Mateja Gabrijelčič | Bank of Slovenia Uroš Herman | GSEFM...

https://www.esm.europa.eu/publications/government-expenditure-composition-and-fiscal-policy-spillovers-small-open-economies-within-a-monetary-union Read publication: Journal of Marcroeconomics Volume 48, June 2016, Pages 305–326 Author: Daragh Clancy | Senior Economist at the European Stability Mechanism with P. Jacquinot and M. Lozej Abstract: We examine the implications of government expenditure that is complementary to private consumption...

https://www.esm.europa.eu/publications/accessing-sovereign-markets-recent-experiences-ireland-portugal-spain-and-cyprus Download PDF: Discussion Paper 2 This discussion paper collects the experiences of former EFSF/ESM programme countries in rebuilding investor trust and returning to normal market access. Coordination by ESM with contributions from heads of Debt Management Offices of Ireland, Portugal, Spain, and...

https://www.esm.europa.eu/publications/how-esm-compares-other-regional-financial-institutions-0 In a world of increasingly integrated capital markets, the global financial crisis and subsequent European financial instability underscored the necessity of setting up credible financial backstops for crisis prevention and resolution. Countries that are under severe financial strain may be shut out...

https://www.esm.europa.eu/publications/non-performing-loan-burden-curbs-lending-holds-back-growth The recent economic and financial crisis led many households and companies to default on bank loans. European banks carry this large stock of NPLs on their balance sheets – the single largest legacy of the past crisis. The NPLs lock banks’ potential lending capacity. During the euro area crisis, the...

https://www.esm.europa.eu/publications/how-greece-benefited-european-debt-relief-0 Euro area Member States have taken several steps to ease the lending terms for Greece to support its ability to service its debt burden, principally through lower financing costs and longer maturities. The first European assistance instrument, known as the Greek Loan Facility (GLF), was amended in...

https://www.esm.europa.eu/publications/esm-annual-report-2015 Download PDF: ESM Annual Report 2015 The annual report contains a description of the ESM's policies, activities, financial statements and economic developments in 2015. Additionally, it contains an external auditor's report and a report of the Board of Auditors. Excerpt of the Message from the...

https://www.esm.europa.eu/investors/us-investors/investors-presentation The Investor Presentation gives an overview of topics that are relevant to investors evaluating ESM instruments, such as:ESM: Key features, structure and instrumentsESM: Lending and funding activitiesWhy invest in ESM?ESM recent transactions & performanceTo see the latest Investor Presentation...

https://www.esm.europa.eu/publications/investor-relations-newsletter-march-2017 Download the March 2017 Investor Newsletter The ESM/EFSF Investor Newsletter is a quarterly publication that provides investors with updates on ESM/EFSF funding activities. Subscribe to the ESM/EFSF Investor Newsletter