SAFE Policy Lecture: Gertrude Tumpel-Gugerell
Title: Eurobills and Debt Redemption
Speaker: Gertrude Tumpel-Gugerell, Chairperson, Expert Group on Eurobills and Debt Redemption, Former Member of the Executive Board, European Central Bank
Europe’s economic and monetary union is now widely seen as incomplete, in need of institutional repair and improvement. A core problem, glaringly highlighted by the sovereign debt crisis in a number of EMU member countries, relates to long-run fiscal sustainability. In addition to reinforced governance mechanisms (adding to and complementing the Stability and Growth Pact), two policy options have been evaluated by a group of high-level experts: The joint issuance of short-term Euro debt, inextricably linked with a number of incentive problems, considered in the report. As well as a credible mechanism to collectively control the path back to sustainable public finances in Europe, a debt redemption fund (as it has also been proposed by the German Council of Economic Experts). Both institutional innovations, while addressing different issues, are seen as potentially useful mechanisms to contribute to a more stable development of EMU.
Gertrude Tumpel-Gugerell is since 2011 Emerita Consultant with the Austrian Institute of Economic Research. Prior to that, between 2003 and 2011, she was a Member of the Executive Board of the European Central Bank with responsibilities for markets (i.e. the operational implementation of monetary policy), payments systems as well as human resources and organization. Between 1997 and 2003, she was Vice Governor of the Austrian National Bank and before that Executive Director, in charge of Economics and Financial Markets. She is also serving on the boards of a number of companies as well as academic institutions. In the summer of 2013, Dr. Gertrude Tumpel-Gugerell was charged by the EU Commission to chair an Expert Group, mandated to prepare a report on Eurobills and a debt redemption fund. The group presented its report to Commission President Barroso in April.