annual report 2010 - bruegel · bruegel’s annual report 2010 page 7 tives markets. but major...

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Bruegel’s members

State members

AustriaBelgiumCyprusDenmarkFinlandFranceGermanyGreeceHungaryIrelandItalyLithuaniaLuxembourgNetherlandsPolandSloveniaSwedenSpainUnited Kingdom

Corporate members

ArevaDeutsche BankDeutsche TelekomEDFErnst & YoungErste Bank GroupGDF SuezGoldman SachsGoogleMicrosoftNovartisPfizerQualcommRenaultSamsung ElectronicsSyngentaUniCredit

Institutional members

European Investment BankEuropean Bank for Reconstruction andDevelopment

Members as of June 2011. For further information about Bruegel’s governance and its relationship with itsmembers, see page 31.

P A G E 2 B R U E G E L’ S A N N U A L R E P O R T 2 0 1 0

BRU EGE L’ S M I S S I ON . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

C H A I R M A N ’ S M E S S A GE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

D I R EC TOR ’ S I N T RODUC T I ON . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

OP E R AT I ON A L R E V I E W BY R E S E A R C H A R E A . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

A . GO V E R N I NG T H E N E W GLOB A L ECONOM Y . . . . . . . . . . . . . . . . . . . . . . . . . . 8

B. H E I GH T E N E D M A C ROECONOM I C C H A LLE NGE S FOR EU ROP E . . . . . . . . . . . . 1 2

C . EU ROP E ’ S QU E S T FOR ECONOM I C P E R FOR M A NC E . . . . . . . . . . . . . . . . . . . 1 6

D. COM P E T I T I ON A N D R EGU L AT I ON I N A MOR E I N T E R V E N T I ON I S T EU ROP E . . . 1 9

E . CL I M AT E A N D E N E RGY I N T H E P O S T- COP E N H A GE N CON T E X T . . . . . . . . . . . 2 3

M E D I A A N D COM M U N I C AT I ON . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 6

F U N DE D R E S E A R C H P ROJ EC T S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 7

T E A M DE V E LOP M E N T . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 9

GO V E R N A NC E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 1

F I N A NC I A L S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3

A U D I TOR ’ S R E P OR T . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 7

BRU EGE L’ S P EOP LE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 8

Contents

B R U E G E L’ S A N N U A L R E P O R T 2 0 1 0 P A G E 3

Bruegel’s missionBRU EGE L A I MS TO CON T R I BU T E TO T H E QU A L I T Y OF ECONOM I C

P OL I C Y M A K I NG I N EU ROP E T H ROU GH OP E N, FA C T- B A S E D

A N D P OL I C Y- R E LE VA N T R E S E A R C H , A N A LY S I S A N D D I S C U S S I ON.

Bruegel is defined by five key features:

Outward-oriented focus. Bruegel aims to con-tribute to a better understanding of the eco-nomic challenges and responsibilities facingEurope in the context of globalisation.

Evidence-based policy recommendations.Bruegel does not stand for any particularpolicy doctrine. Its research draws on state-of-the-art analysis to assess economic transfor-mations, discuss policy options and proposerecommendations – while always keeping aneye on their practical feasibility.

Demand-driven questions, independentanswers. Bruegel’s Research Programme is setby the Board, which represents the diversity ofBruegel’s stakeholders. Decisions on newresearch projects follow extensive discussionswith Bruegel’s members. Once a research topicis chosen, however, research and publications

are fully independent. All publications arereleased under the signature of theirauthor(s), and Bruegel itself abstains fromtaking any policy positions.

Linking government, research, business andcivil society. Bruegel provides a forum forinformed policy discussions between individu-als from diverse backgrounds. Bruegel alsoaims to cooperate with leading European andinternational research institutions on specificresearch projects.

European reach. Bruegel addresses topics forwhich policy responsibility rests with individ-ual states, the European Union, orinternational organisations. It is developing itspresence in national debates across Europe,as well as Brussels and international discus-sion forums.


Chairman’s message

Last year I introduced thismessage by noting that thecrisis would be marked notonly by inherently difficultpolicy choices, but also byinstitutional cohesion andgovernance issues. I regretto say that this observation

is even more valid in June 2011. Not for morethan 60 years have we in Europe heard politi-cal exchanges between our countries of suchrawness as those we have heard over the lastmonths. The strains of finding a durable solu-tion to the euro-area debt problem havereached such a degree that they look today asif they might overstress the very core princi-ples of the EU – the four freedoms, solidarityand the rule of law. Let us hope not.

In analysing these events, Bruegel has soughtto consolidate its role as a skilled and trustedparticipant in European economic policymak-ing, and the think tank to whom Europe’s lead-ers turn for dispassionate, fact-basedinvestigation and fresh thinking. But it is clearfrom international economic discourse andrankings that Bruegel is also enjoying increas-ing recognition outside Europe.

I am therefore proud that the Bruegel Boardand General Assembly chose to re-elect me asChairman of Bruegel in April this year. The newboard is a very strong and diverse one, com-posed of members of the highest calibredrawn from European government, major cor-porations and civil society. I am confident thatthis remarkable group of individuals can andwill take Bruegel successfully to the nextstage of its development. A robust and verypositive evaluation report in June 2010 from

the independent task force reviewingBruegel’s performance over the period 2007-09 provides a solid launchpad for board andmanagement to build on.

Whilst on the subject of Bruegel governance, Iwish to welcome a new group in our midst,alongside the existing state and corporatemember groups: our group of institutionalmembers, currently made up of the EuropeanInvestment Bank and the European Bank forReconstruction and Development. Other public,non-governmental organisations have alsoexpressed an interest in becoming membersof Bruegel. We believe the establishment of thenew institutional group is a healthy sign thatBruegel is acquiring ever-broader acknowl-edgement in the policymaking world.

To come to substance: Bruegel’s core activitiesremain publications and events. While Bruegellast year published around thirty papers andorganised over fifty events, we are on target in2011 to achieve higher levels of output. Ofcourse, quantity is not synonymous with qual-ity, but I am pleased to note that Bruegel hasachieved critical mass. Our annual outreachreport for 2010 bears out this conclusion. Inmy view, this outreach report is of consider-able value, as it charts Bruegel’s growing‘demand-side’ success.

I wish to end by thanking Bruegel’s state, cor-porate and institutional members for their con-tinuing support. More than for any other thinktank, Bruegel with its highly interactive mem-bership model is heavily reliant on input fromits members for its success.

Leszek Balcerowicz

“ BRU EGE L I S CONS OL I DAT I NG I T S ROLE A S A S K I LLE D A N D T RU S T E D

PA R T I C I PA N T I N EU ROP E A N ECONOM I C P OL I C Y M A K I NG ”


Director’s introductionBRU EGE L I S P ROU D TO H AV E CON T R I BU T E D TO EU ROP E A N P OL I C Y

T H I N K I NG I N 2 0 1 0 .

Bruegel has entered its sev-enth year. Some will say itis still young for a thinktank. And indeed it is,because research ispainfully slow and becauseit takes time to build a repu-tation. But at the same

time, we are older than Facebook, Twitter andother companies that are changing the worldas we knew it. So it is time to stop pretendingwe are newborn. The coming of age hasarrived.

A first expression of change can be found inour governance. The generation of the found-ing fathers and mothers has largely given wayto a new one. Caio Koch-Weser, who had a keyrole in the creation of Bruegel, Peter Praet, whowas instrumental in establishing it in Brussels,and Frank Dangeard, who helped shaping itsgovernance culture, have left the Board at theend of their second term. Also gone are LydiaAguirre, Thomas Mirow, Jaroslaw Pietras andAdam Posen, who served over the last threeyears. A strong new Board was elected at thebeginning of 2011, whose members are in themajority new to the Bruegel endeavour – atleast in this capacity.

A second manifestation is the adoption of athree-year research programme and of fourstable research areas. This is hardly a revolu-tion: there has been a fair amount of continu-ity in our research agenda. But in addition,stable research areas bring a better ability tocarry out research investment that will bearfruit in the future, more clarity in the relation-ship with our members, and an enhanced visi-bility of our identity and priorities. These

research areas – European macroeconomics,global economics, financial regulation, andcompetition, innovation and sustainablegrowth – are not immutable. But they areexpected to evolve only slowly. The combina-tion of stability in the research investment andflexibility in the choice of topics is actually afeature of Bruegel’s research strategy.

For more than a year now, the sovereign crisesin the euro area and the re-examination of itsgovernance have given much prominence tothe first area. Macroeconomics ought to beboring, as Mervyn King said of central banking.Unfortunately, it is not, and this is what hascontributed to high demand for contributionsby Bruegel scholars on European crisis man-agement and reform. In difficult times, wehave aimed at striking the right balancebetween innovativeness and do-ability. Papersby our scholars aim at redrawing the lines, butin a way that practical men and women stillfind of relevance for the solution of the issuesthey have to address in the real world.

These are not quiet times in the field of globaleconomics either. On the contrary, topics suchas global coordination and the reform ofinternational monetary arrangements are highon the agenda after decades of intellectual andpolicy apathy. Bruegel from the outset hasrefused to focus exclusively on intra-Europeanaffairs and has been keen on contributing tothe global policy discussion.

Has the dust settled in the field of financialregulation? Certainly, it is a less bruising fieldthan in 2008-2009, when G20 heads of stateand government were discussing the minutiaeof liquidity ratios and the regulation of deriva-



tives markets. But major policy choicesremain ahead of us, while at the same timethe initial post-crisis convergence of views hasstarted receding in favour or more differenti-ated approaches. There is definitely a need foranalyses and proposals that escape the usualbiases.

Competition, innovation and sustainablegrowth, our fourth research area, is admittedlyof a longer-term nature. But it is about no lessthan the shape of economic development inEurope and the regulatory policies that caninfluence it, be they in the field of energypolicy, climate change, or digital Europe. At atime when Europe realises that the globalcrises have dramatically accelerated the shiftof the centre of gravity of the global economy,improving economic performance while at thesame time ensuring sustainability has becomea major priority for the continent. It is to behoped that as the urgency of fighting firesgradually abates, such structural dimensions

will become more and more important on thepolicymakers’ agenda. It is our intention tocontribute to putting the focus on them.

The third dimension of our coming of age ismanagerial. Bruegel in its first years benefittedfrom generous funding from its members,which meant it was able to take off and grow.It then started to broaden its resource base,especially through research grants. The timehas now come when members are themselvesfacing serious revenue constraints, andBruegel is perfectly aware that this affectsmembers’ funding capacity.

Performance and continued development in amore challenging environment involve learningand adaptation. Cost minimisation, resourcediversification and prudent financial manage-ment are the order of the day. We are commit-ted to delivering them in 2011 and beyond.

Jean Pisani-Ferry

Operational review byresearch area

A. GOVERNING THE NEW GLOBAL ECONOMY

Areas of focus:Analyses of and proposals for G20 priorities;future global monetary arrangements; globalfinancial architecture.

Research team:Coordinator: André SapirContributors: Ignazio Angeloni, Zsolt Darvas,Jean Pisani-Ferry and Garry Schinasi.

Research activities:Research on Analyses of and proposals forG20 priorities was structured around theBruegel G20 Monitor (G20M)(http://www.bruegel.org/g20monitor.html)which serves as a forum of discussion specifi-cally dedicated to G20 issues. In 2010 theG20M hosted comments by scholars affiliatedwith Bruegel and by external experts. Itaccompanied the institutional calendar bytiming its contributions around the main G20events, such as summits and ministerialmeetings. Bruegel Visiting Fellow IgnazioAngeloni was in charge of the G20 Monitor.

Bruegel also took part in the G20 discussionsthrough bilateral contacts with, and contribu-tions to the Korean presidency, participationin the Brookings Institute ‘Think Tank 20’ proj-ect (http://www.brookings.edu/reports/2010/1109_g20_summit.aspx), the organisa-tion of various dedicated meetings (includinga workshop on the relationship betweenEuropean and G20 coordination, a Canada-Korea-France conference in Seoul inSeptember 2010 and the Bruegel, CEPII –Centre d'études prospectives et d'informationsinternationales, ICRIER – Indian Council for

Research on International Economic Relations,G20 conference in Delhi) and a series of publi-cations (below). The Policy Brief ‘Not all finan-cial regulation is global’ was presented byNicolas Véron to the informal ECOFIN council inSeptember 2010 as part of the ministers’preparations for the Seoul summit.

Research on Future global monetary arrange-ments was initiated in the framework of theFrench G20 Presidency through an EC fundedresearch project ‘Reform options for the globalreserve currency system and their implica-tions for the EU economy’. Jointly carried outby Bruegel and CEPII, the project started inSeptember 2010 (end date: September 2011),involving a series of meetings and seminars.Early results were presented to the G20deputies in Paris in January 2011.

Jean Pisani-Ferry was also appointed amember of the Council on InternationalMonetary Reform recently created under theauspices of the Sloan Foundation. This Councilis expected to issue its first report in October2011.

Research on Global financial architecture ispart of a joint Bruegel, Peterson Institute forInternational Economics (PIIE), 2010-2011 ECfunded research project on ‘The transatlanticrelationship in an era of growing economicmultipolarity’. As indicated below a jointBruegel-PIIE conference was held at thePeterson institute in October 2010 on theoccasion of the Fund-Bank Annual meetingand several papers resulted from it.

Overall, research on global economy issueshelped to strengthen the Strategic Partnership


between the German Marshall Fund (GMF) andBruegel, which started in 2009 and covers theperiod 2009-2011. Both organisations benefitfrom deepening and developing the global andtransatlantic dimensions of research and fromthe synergies resulting from linking therespective strengths of Bruegel and the GMF.

Research Publications:

Bruegel publications:• China and the world economy: a European

perspective, Policy Contribution, JeanPisani-Ferry, March 2010 (a shortenedFrench version was also published in theFrench journal Commentaire)

• The threat of 'currency wars': a Europeanperspective, Policy Contribution, ZsoltDarvas, Jean Pisani-Ferry, December 2010

External publications:• The G20 in the Aftermath of the Crisis: a

Euro-Asian View, La Lettre du CEPII, issue299, Agnès Bénassy-Quéré, BenjaminCarton, Fan He, Masahiro Kawai, Yung ChulPark, Jean Pisani-Ferry, June 2010

• Le retour des controverses monétairesinternationales, Agnès Bénassy-Quéré andJean Pisani-Ferry, in CEPII (ed.), Economiemondiale 2011, La Découverte, Paris,October 2010

• Beyond the WTO? An Anatomy of EU and USPreferential Trade Agreements, The WorldEconomy, Blackwell Publishing, vol. 33(11),pages 1565-1588, Henrik Horn, Petros C.Mavroidis, André Sapir, November2010.

• Is G20 coordination already passé?, JeanPisani-Ferry, in Cercle des économistes, A larecherche de la nouvelle croissance, Actesdes rencontres économiques d’Aix-en-Provence, November 2010

• United States - Subsidies on Upland CottonRecourse to Article 21.5 by Brazil,WT/DS267/AB/RW (2 June 2008), WorldTrade Review, Cambridge University Press,vol. 9(01), pages 181-199, Davey WilliamJ., Sapir André, January 2010.

Cross-area publications:• Reform of the global financial architecture,

Working Paper, Garry Schinasi and TedTruman, October 2010

• Not all financial regulation is global, PolicyBrief, Stéphane Rottier, Nicolas Véron,September 2010

• An assessment of the G20’s initial actionitems, Policy Contribution, Stephane Rottier,Nicolas Véron , September 2010

A number of shorter notes were also issued,especially op-eds, and within the framework ofthe G20 Monitor.

Events

Conferences

16-17 September 2010International cooperation in times of globalcrisis: views from G20 countries• Organisers: Bruegel, CEPII (Centre d'études

prospectives et d'informations interna-tionales), ICRIER (Indian Council forResearch on International EconomicRelations)

• Location: New Delhi, India• Attendees: 290• Main speakers: Pranab Mukherjee (Minister

of Finance, India), Montek Singh Ahluwalia(Deputy Chairman, Planning Commission,India), Reza Moghadam (Head of the IMF’sSPR Department), Tommaso Padoa-Schioppa (President, Notre Europe), andChangyong Rhee (Secretary General,Presidential Committee for the G-20Summit Committee).

• Further contributions: Michel Aglietta(Professor, University of Paris X Nanterre),Richard Baldwin (Professor, GraduateInstitute), Peter Draper (South AfricanInstitute of International Affairs), SimonEvenett (Professor, University of St Gallenand CEPR), Subir Gokarn (Deputy Governor,RBI), Ilan Goldfajn (Chief economist, ItaúUnibanco), Daniel Gros, (Director, CEPS),Yiping Huang (Professor, Peking University),Alejandro Jara (Deputy Director General,


WTO), Shigeo Kashiwagi (Ministry ofFinance, Japan), Masahiro Kawai (Dean,ADBI), Jong-Wha Lee (Chief Economist,ADB), Gian-Maria Milesi-Ferretti (AssistantDirector, Research Department, IMF), CarloMonticelli (Head of InternationalDepartment, Italian Treasury), AvinashPersaud (Chairman, Intelligence Capital),Zhou Qiren (Dean, National School ofDevelopment, China Center for EconomicResearch, Peking University), Chia Siow Yue(Singapore Institute of InternationalAffairs), Sinan Ulgen (Chairman, EDAM),David Vines (Professor, Oxford University),Natalia Volchkova (New Economic School,Moscow).

• Contributions from the organising institu-tions: Agnès Bénassy-Quéré (Director,CEPII), Rajiv Kumar (former Director,ICRIER), Parthasarathi Shome (Director andChief Executive, ICRIER) and Bruegel’s JeanPisani-Ferry and Nicolas Véron.

8 October 2010The transatlantic relationship in an era ofgrowing economic multipolarity• Organisers: Bruegel, Peterson Institute for

International Economics • Location: Washington DC, USA• Attendees: 234 • Contributors: Anders Aslund (PIIE), Jörg

Asmussen (German Federal Ministry ofFinance), Fred Bergsten (PIIE), LorenzoBini-Smaghi (ECB), James Bradbury (WRI),Sharon Bowles (Chair, Economic andMonetary Affairs Committee, EuropeanParliament), Marco Buti (EuropeanCommission, DG ECFIN), William Cline(PIIE), Mario Draghi (Bank of Italy andFinancial Stability Board), Mohamed El-Erian (PIMCO), Stanley Fischer (Bank ofIsrael), Victor Gao (Beijing Private EquityAssociation), Anil Kashyap (Chicago BoothSchool of Business), Rajiv Kumar(FIIC),Guillermo Ortiz (Guillermo Ortiz Asociados),Ken Rogoff (Harvard), Nouriel Roubini(RGE), Edwin Truman (PIIE), Paul Tucker(Bank of England) and Bruegel scholarsZsolt Darvas, Jean Pisani-Ferry, Garry

Schinasi, Nicolas Véron and ReinhildeVeugelers.

24-25 March 2010Asia Europe Economic Forum: ‘Facing theaftermath’• Organisers: ADBI, Bruegel, CEPII, Chinese

Academy of Social Sciences, IfW Kiel, KeioUniversity, Korea University.

• Location: Tokyo, Japan• Attendees: 61• Contributors: Taeho Bark (Dean, Seoul

National University), Peter Bekx (Directorfor International Economic Relations,European Commission, DG ECFIN), SumanBery (National Council for Applied EconomicResearch, India), Feng Chunping, (DeputyDirector, Research Department, EXIM Bank),Lorenzo Codogno (Chairman, EconomicPolicy Committee of the EU), Toyoo Gyoten(Institute for International Monetary Affairs,Japan), Masahiro Kawai (Dean, AsianDevelopment Bank Institute), KyungsooKim (President, Institute for Monetary andEconomic Research, Bank of Korea), JaeYoung Lee (Ministry of Strategy andFinance, Republic of Korea), Seung Jae Lee(Principal Financial Sector Specialist, ADB;former director, Ministry of Strategy andFinance, Korea), Daokui Li (TsinghuaUniversity), Guonan Ma (Senior Economist,Representative Office for Asia and thePacific, Bank for International Settlement),Frank Moss (Director-General for externalrelations, European Central Bank), WolfgangMunchau (Financial Times), Rainer Münz(Chief Economist, Erste Bank, Austria),Takehiko Nakao (Director General,International Bureau, Ministry of Finance,Japan), Hiroshi Ogushi (Senior ViceMinister of Finance, Japan), PiercarloPadoan (Chief Economist and DeputySecretary-General, OECD), ChalongphobSussangkarn (Thai Development ResearchInstitute), Guan Tao, (Director, Departmentof General Affairs, State Administration ofForeign Exchange, China), David Vines(Oxford University).

P A G E 1 0 B R U E G E L’ S A N N U A L R E P O R T 2 0 1 0

Workshops and seminars

18 January 2010Bruegel - Economic policy coordination at EUand G20 levels• Organiser: Bruegel• Location: Bruegel, Brussels• Contributors: Marek Belka (European

Department, IMF), Gian-Maria Milesi-Ferretti(Research Department, IMF), Marco Buti(DG ECFIN, European Commission), LucCoene (National Bank of Belgium), MattiasHector (Ministry of Finance, Sweden), PierCarlo Padoan (OECD), Thomas Wieser(Federal Ministry of Finance, Austria),Thomas Westphal (Federal Ministry ofFinance, Germany), Stephen Pickford andMichael Ellam (HM Treasury, UK) as well asJean Pisani-Ferry, André Sapir, GarrySchinasi, Nicolas Véron from Bruegel.

3 May 2010Vulnerability exercise for emerging markets• Organiser: Bruegel• Location: Bruegel, Brussels• Contributors: Gathered experts from

International Monetary Fund, EuropeanInstitutions, academia and Bruegel.

15 June 2010The future mandate of the IMF• Organiser: Bruegel• Location: Bruegel, Brussels• Contributors: Zhu Min (special adviser to

the Managing Director) and RezaMoghadam (Director of the SPRDepartment).

31 August 2010The world we are in• Organiser: Bruegel, European Council on

Foreign Relations (ECFR) • Location: Bruegel, Brussels• Contributors: Zsolt Darvas, Benedicta

Marzinotto, Jean Pisani-Ferry, Bruno vanPottelsberghe, Nicolas Véron, ReinhildeVeugelers and Georg Zachmann fromBruegel as well as Susi Dennison, AnthonyDworkin, François Godement, Richard

Gowan, Ulrike Guerot, Thomas Klau, HansKundnani, Mark Leonard from ECFR.

25 November 2010The day after tomorrow: a handbook on thefuture of economic policy in the developingworld • Organiser: Bruegel, World Bank• Location: Bruegel, Brussels• Contributors: Vice President and head of the

World Bank's Poverty Reduction andEconomic Management (PREM) network,Ottaviano Canuto and experts and policy-makers from the European Commission andWorld Bank.

Lunchtalk@bruegel

21 June 2010The crisis and the distribution of income inEurope, the United States and elsewhere• Organiser: Bruegel• Location: Bruegel, Brussels• Contributors: Danny Leipziger (George

Washington University), Philippe Pochet(European Trade Union Institute).

15 September 2010Transatlantic cooperation to strengthen therecovery• Organiser: Bruegel• Location: Bruegel, Brussels• Contributors: Charles Collyns (Assistant

Secretary for International Finance, U.S.Treasury), André Sapir (Bruegel, UniversitéLibre de Bruxelles).

6 October 2010Rebalancing for sustainable growth: Asia'spost-crisis challenge• Organiser: Bruegel and Asian Development

Bank Institute (ADBI)• Location: Bruegel, Brussels• Contributors: Masahiro Kawai (Dean, ADBI),

André Sapir (Bruegel, Université Libre deBruxelles).

B R U E G E L’ S A N N U A L R E P O R T 2 0 1 0 P A G E 1 1

Finance Focus Breakfast

25 May 2010Fiscal deleveraging in the developed world:how can it play out?• Organiser: Bruegel• Location: Bruegel, Brussels• Contributors: Pierre Cailleteau, (Moody's)

and Etienne de Callatay (Bank DeGroof).

Annual meeting

A large part of Bruegel’s Annual Meeting on 23and 24 June 2010, the theme of which was IsEurope still on the map? was devoted to dis-cussing international economic themes, espe-cially a panel with Bruegel Senior Fellow DaliaMarin, Board members Caio Koch-Weser(Deutsche Bank) and Adam Posen (Bank ofEngland and Peterson Institute), Rajiv Kumar(ICRIER) and European Trade CommissionerKarel De Gucht.

Bruegel Economic Club Dinner

• 6 May 2010 – Bruegel Economic ClubDinner with Edmund Phelps (McVickarProfessor of Political Economy, ColumbiaUniversity)

• 30 June 2010 – Bruegel Economic ClubDinner with Pascal Lamy (Director-General,World Trade Organisation)

• 14 September 2010 – Bruegel EconomicClub Dinner with Dominique Strauss-Kahn(Managing Director, IMF)

B. HEIGHTENED MACROECONOMIC CHALLENGESFOR EUROPE

Areas of focus:The euro-area policy regime revisited; newgrowth models in central and eastern Europe;domestic economic and financial institutions

Research team:Coordinator: Zsolt DarvasContributors: Jürgen von Hagen, BenedictaMarzinotto, Jean Pisani-Ferry and André Sapir.

Research activities:The euro-area policy regime revisited was oneof the most active and visible research areasin 2010, as Bruegel actively contributed to thedebate on the evolution of the euro-area crisisand the consequent institutional changesthrough various publications, events, externaland media contributions. Key publications inthis area were the Blueprint ‘A European mech-anism for sovereign debt crisis resolution: aproposal’, which set a record among Bruegelpublications in terms of the number of down-loads, and the Policy Brief ‘The blue bond pro-posal’, which also attracted wide attention.

The main publication of the research on Newgrowth models in central and eastern Europewas the joint Bruegel and The Vienna Institutefor International Economic Studies (WIIW)report, ‘Whither growth in central and easternEurope? Policy lessons for an integratedEurope’, written by an expert group of econo-mists from various European countries. Thelaunch of the report in Brussels was jointlyorganised with the European Bank forReconstruction and Development (EBRD). Thereport was further promoted with the assis-tance of the German Marshall Fund (GMF) inBulgaria, Poland and Slovakia. Two relatedworking papers have also been published inthis area.

Domestic economic and financial institutionswas examined though the study of the role offiscal and monetary institutions in macroeco-nomic stability and budgetary control in CESEE


countries in comparison with other OECD coun-tries, a research project commissioned by theOECD. The research paper was presented at anOECD conference in September 2010 and pub-lished in 2011.

Research publications

Bruegel publications• Monetary policy and risk taking, Working

Paper, Ignazio Angeloni, Ester Faia andMarco Lo Duca, February 2010

• Two crises, two responses, Policy Brief,Benedicta Marzinotto, Jean Pisani-Ferryand André Sapir, March 2010

• The blue bond proposal, Policy Brief, Jakobvon Weizsäcker and Jacques Delpla, May2010

• Euro-area governance: What went wrong inthe euro area? How to repair it?, PolicyContribution, Jean Pisani-Ferry, June 2010

• Fiscal federalism in crisis: lessons forEurope from the US, Policy Contribution,Zsolt Darvas, July 2010

• Why Germany fell out of love with Europe,Essay and Lecture Series, Wolfgang Proissl,July 2010

• A European mechanism for sovereign debtcrisis resolution: a proposal, Blueprint,François Gianviti, Jürgen von Hagen, AnneO. Krueger, Jean Pisani-Ferry and AndréSapir, November 2010

• Assessing the potential for knowledge-based development in transition countries,Working Paper, Reinhilde Veugelers, May2010

• Whither growth in central and easternEurope? Policy lessons for an integratedEurope, Blueprint, Bruegel and wiiw,Torbjörn Becker, Daniel Daianu, ZsoltDarvas, Vladimir Gligorov, MichaelLandesmann, Pavle Petrovic, Jean Pisani-Ferry, Dariusz Rosati, André Sapir andWeder Di Mauro, November 2010

• Beyond the crisis: prospects for emergingEurope, Working Paper, Zsolt Darvas,December 2010

External publications• Government size and output volatility:

should we forsake automatic stabilisation?,Xavier Debrun, Jean Pisani-Ferry and AndréSapir), in The Euro: The First Decade, editedby Marco Buti, Servaas Deroose, VitorGaspar and João Nogueira Martins,Cambridge University Press, 2010

• L’euro en 2019/The euro in 2019, edited byPierre Jaillet and Jean Pisani-Ferry, specialissue of the Revue d’Economie Financière,February 2010

• The impact of the crisis on new memberstates, European Parliament briefing paper,Zsolt Darvas, March 2010

• Banking crisis management in the EU: anearly assessment, Economic Policy, CEPR,CES, MSH, vol. 25, pages 341-373, 04, JeanPisani-Ferry , André Sapir, April 2010

• Monitoring macroeconomic imbalances inEurope: proposal for a refined analyticalframework, European Parliament briefingpaper, Carlo Altomonte and BenedictaMarzinotto, September 2010

• The case for reforming euro area entry crite-ria, Society and Economy Volume 32, Issue2, pages 195-219, Zsolt Darvas, December2010

• Economic Policy, Agnès Bénassy-Quéré,Benoît Coeuré, Pierre Jacquet and JeanPisani-Ferry, Oxford University Press,September 2010

• Facts and lessons from euro area diver-gences for enlargement, ‘Euro andEconomic Stability: Focus on Central,Eastern and South-eastern Europe’, EdwardElgar, p. 145-171, Zsolt Darvas, EwaldNowotny, Peter Mooslechner and DorisRitzberger-Grünwald (eds.), November2010

Events

Conferences

17 March 2010Euro@10• Organisers: Bruegel and Peterson Institute

for International Economics


• Location: Dallas, Texas• Contributors: Ajai Chopra (IMF), Antonio de

Lecea (European Commission), Richard W.Fisher (Federal Reserve Bank of Dallas),Joseph E. Gagnon (PIIE), Vítor Gaspar(Banco de Portugal), Thomas Glaessner(Citigroup), C. Randall Henning (PIIE), DavidG. Mayes (University of Auckland), GeorgesPineau (ECB), Edwin M.Truman (PIIE),Carlos E. J. M. Zarazaga (Federal ReserveBank of Dallas), Adam Posen (PIIE), HarveyRosenblum (Federal Reserve Bank ofDallas); Zsolt Darvas, Garry Schinasi andNicolas Véron from Bruegel.

11-13 June 2010Economic governance in the eurozone and theEU: drawing lessons from the crisis• Organisers: Bruegel and ELIAMP• Location: Cape Sounion, Greece• Attendees: 33• Contributors: Iain Begg (LSE), Peter

Bofinger (German Council of EconomicExperts & University of Würzburg),Laurence Boone (Barclays Capital), NikosChristodoulak (University of Economics andBusiness), Daniel Daianu (National Schoolfor Political Studies and PublicAdministration, SNSPA), Anton Hemerijck(Free University), Donato Masciandaro(Bocconi University), Antonio Missiroli(European Commission, BEPA), CarlosMulas-Granados (IDEAS), ManfredNeumann (Bonn University), GeorgePapaconstantinou (Minister of Finance,Greece), Wolfgang Proissl (Bruegel,Financial Times Deutchland), LoukasTsoukalis (ELIAMEP & University of Athens),David A. Vines (University of Oxford),Guntram Wolff (European Commission, DGECFIN), and Bruegel’s Zsolt Darvas,Benedicta Marzinotto, Jean Pisani-Ferryand André Sapir.

30 September 2010Getting the European economy back on track• Organisers: European Parliament, Bruegel• Location: European Parliament, Brussels• Attendees: 150

• Speakers: Vince Cable (Business Secretary,UK Government), Fiona Hall (MEP), MalcolmHarbour (MEP), Timothy Kirkhope (MEP),Jean Pisani-Ferry (Bruegel).


14 September 2010Bruegel – Sovereign risk and fiscal policy inthe euro area: lessons from the crisis• Organiser: Bruegel, International Monetary

Fund (IMF)• Location: Bruegel, Brussels• Main speakers: Olivier Blanchard (IMF), Ajai

Chopra (IMF), Carlo Cottarelli (IMF) andDominique Strauss-Kahn (IMF)

• Further contributors: Marco Annunziata(Unicredit), Roel Beetsma (University ofAmsterdam), Peter Bofinger (University ofWürzburg; German Council of EconomicExperts), Antonio Fatas (Insead), ChristianKastrop, (German Finance Ministry),MoritzKraemer (S&P’s), Erik Nielsen (GoldmanSachs), Klaus Regling (Financial StabilityFacility), Odile Renaud-Basso (Van RompuyCabinet), (EFSF), Pierre Renom (BNPParibas), Ludger Schuknecht (EuropeanCentral Bank), Michael Story (WesternAsset Management), Gerassimos Thomas(EU Commission), and Bruegel scholarsBenedicta Marzinotto, Jean Pisani-Ferry,André Sapir, Jakob von Weizsäcker.

24 November 2010Bruegel – Does emerging Europe need a newgrowth model?• Organiser: Bruegel, European Bank for

Reconstruction and Development (EBRD)• Location: Bruegel, Brussels• Main speakers: László Andor (European

Commissioner for employment), GordonBajnai (Former Prime Minister of Hungary),Leszek Balcerowicz (Warsaw School ofEconomics; Bruegel), Erik Berglof (EBRD)and Thomas Mirow (EBRD).

• Further contributors: Vladimir Gligorov (WIIW),Michael Landesmann (WIIW), JerominZettelmeyer (EBRD) and Bruegel scholars ZsoltDarvas, Jean Pisani-Ferry and André Sapir.


Lunchtalk@bruegel

22 January 2010Bruegel – Development through financial inte-gration? Lessons from emerging Europe• Organiser: Bruegel• Location: Bruegel, Brussels• Speakers: István Székely (European

Commission, DG ECFIN), JerominZettelmeyer (EBRD)

21 May 2010Bruegel – The independent evaluation of elec-tion platforms• Organiser: Bruegel• Location: Bruegel, Brussels• Speaker: Coen Teulings (Netherlands

Bureau of Economic Policy Analysis –CPB)

7 October 2010Bruegel – Will It hurt? Macroeconomic effectsof fiscal consolidation• Organiser: Bruegel• Location: Bruegel, Brussels• Speaker: Daniel Leigh (IMF)

5 November 2010Bruegel – Reshaping the Stability Pact: mis-sion impossible?• Organiser: Bruegel• Location: Bruegel, Brussels• Speaker: Charles Wyplosz (HEI - Graduate

Institute for International Studies)

Bruegel Economic Policy Seminar

1 April 2010Bruegel – Whence policy? Governments,finance, and economic integration• Organiser: Bruegel• Location: Bruegel, Brussels• Speaker: Giuseppe Bertola (University of

Torino)

13 April 2010Bruegel – Global retail lending in the aftermathof the US financial crisis: distinguishingbetween supply and demand effects• Organiser: Bruegel

• Location: Bruegel, Brussels• Speakers: Sanvi Avouyi-Dovi (Banque de

France), Jörg Rocholl (ESMT)


2 September 2010Taking stock of the euro crisis• Organiser: Bruegel• Location: Bruegel, Brussels• Speakers: Thomas Mayer (Deutsche Bank),

Paul Tang (Former Member of the DutchParliament)

Policy panels and publication launches

22 February 2010Bruegel – Launch of the 2010 EEAG (EuropeanEconomic Advisory Group) Report on theEuropean Economy• Organiser: Bruegel, CESifo• Location: Bruegel, Brussels• Speakers: Gilles Saint-Paul (University of

Toulouse), Hans-Werner Sinn (CESifo),Reinhilde Veugelers (Bruegel and KULeuven), Jacob von Weizsäcker (Bruegel)

1 July 2010Bruegel – Essay Launch Why Germany fell outof love with Europe• Organiser: Bruegel• Location: Bruegel, Brussels• Speakers: Pierre Moscovici (French

Parliament), Wolfgang Proissl (Bruegel),Hans-Werner Sinn (CESifo)

Annual meeting

The Annual meeting addressed the topic ofHeightened macroeconomic challeneges forEurope in two high-level panels on MakingEurope globally relevant: is it still possible?The President of the European Council HermanVan Rompuy also addressed this topic at theAnnual Dinner.


• 20 January 2010 - Bruegel Economic Club


Dinner with Thomas Mirow (President,EBRD)

• 22 March 2010 - Bruegel Economic ClubDinner with Jean-Claude Trichet (President,ECB)

C. EUROPE’S QUEST FOR ECONOMICPERFORMANCE

Area of focus:The drivers of innovation

Research team:Coordinator: Reinhilde Veugelers Contributor: Bruno Van Pottelsberghe

The determinants of firm-level performance

Research teamCoordinator: Gianmarco OttavianoContributors: Carlo Altomonte and Dalia MarinResearch activities

The project on Innovation eco-systemsfocused on the role of young innovative com-panies and their interactions with universities,large incumbent players, venture capital finan-ciers and government agencies. This resultedin Policy Contributions and Policy Briefs, aswell as external publications (listed below).

For the Globalisation of science, evidence wascollected on trends and impact resulting in anexternal publication (below); presentationswere made at several fora in Brussels. A firstPolicy Brief was published in 2011.

On the Governance of innovation, work tookplace on the design of EU innovation policies.A policy contribution was published following apresentation at a Belgian EU PresidencyConference. This contribution was also pub-lished externally and gave rise to an article inNature.

Research in the area of Determinants of firmlevel performance were carried on under theEU funded project European Firms in the GlobalEconomy (EFIGE) that is running from 2008 to

2012. EFIGE is a Collaborative ResearchProject funded by the 7th FrameworkProgramme of the European Union, coordi-nated by Bruegel and the Centre for EconomicPolicy Research (CEPR), which looks at theinternational competitiveness of Europeanfirms on the basis of a new publicly-availablefirm-level survey carried out in parallel inseven EU countries linked to existing firm-leveldata sources. Five specific dimensions wereanalysed in 2010: size and productivity;organisation and innovation; internationalisa-tion; financial constraints and skills. Withinthe year a large novel dataset on Europeanfirms was created to support future research.Preliminary findings gave rise to a policy briefand a forthcoming policy report. Furtherresearch resulted in ten working papers (listedbelow, EFIGE Working Papers).

Research publications

Bruegel publications• Memo to the New Digital Agenda

Commissioner, Policy Contribution, Brunovan Pottelsberghe, Reinhilde Veugelers,January 2010

• Europe should stop taxing innovation,Policy Brief, Bruno van Pottelsberghe, March2010

• Assessing the potential for knowledge-based development in transition countries,Working Paper, Reinhilde Veugelers, May2010

• The global operations of European firms,Policy Brief, Gianmarco Ottaviano, June2010 Boosting Innovation in Europe, PolicyContribution, Mathias Dewatripont, AndréSapir, Bruno van Pottelsberghe, ReinhildeVeugelers, June 2010

• The quality factor in patent system, WorkingPaper, Bruno van Pottelsberghe, July 2010

• The opening up of eastern Europe at 20-jobs, skills, and ‘reserve-maquiladoras’ inAustria and Germany, Working Paper, DaliaMarin, July 2010

• Europe’s missing yollies, Policy Brief,Reinhilde Veugelers, August 2010

• Young leading innovators and EU's R&D


intensity gap, Policy Contribution, MicheleCincera, Reinhilde Veugelers, September2010

External publications• The R&D-patent relationship: An industry

perspective, EIB Papers 7/2009, EuropeanInvestment Bank, Economic and FinancialStudies, Danguy Jérôme, de RassenfosseGaétan, van Pottelsberghe de la PotterieBruno, January 2010.

• The role of fees in patent systems: theoryand evidence, Working Papers ECARESECARES 2010-023, ULB -- Universite Librede Bruxelles, Gaétan de Rassenfosse ,Bruno Van Pottelsberghe, June 2010.

• The quality factor in patent systems,Working Papers ECARES 2010-027, ULB --Universite Libre de Bruxelles, Bruno VanPottelsberghe, July 2010.

• Market size, competition and the productmix of exporters, Research series 201010-202, National Bank of Belgium, ThierryMayer, Marc J. Melitz, Gianmarco I.P.Ottaviano, October 2010.

• Diversity of science linkages: a survey ofinnovation performance effects and someevidence from Flemish firms, Economics-Ejournal, 2010-33, Cassiman, B., R.Veugelers and P. Zuniga, 2010.

• A post-crisis policy agenda to reviveEurope's Schumpeterian growth capacity,Reflets et perspectives de la vieéconomique, vol. 0(2), 15-24. Veugelers, R.,2010.

• On young highly innovative companies:why they matter and how (not) to policysupport them, Industry and CorporateChange, 19, 4, 969-1007, Schneider, C. & R.Veugelers, 2010.

• Towards a multipolar science world: trendsand impact, Scientometrics, 82, 2, 439-456, Veugelers, R., 2010.

• An ‘elite’ brain drain: are foreign top PhDs inthe US less likely to return home? KUL-MSIWorking Paper, Van Bouwel, L. & R.Veugelers, 2010.

EFIGE working papers• Margins of international banking: is there a

productivity pecking order in banking, too? -IAW: Claudia Buch, Cathérine Tahmee Kochand Michael Kötter, January 2010

• The tip of the iceberg: modeling trade costsand implications for intraindustry realloca-tion - CEPR: Alfonso Irarrazabal, AndreasMoxnes and Luca David Opromolla, February2010

• Do sales tax credits stimulate the automo-bile market? - Carlos III: Jiawei Chen,Susanna Esteban and Matthew Shum,February 2010

• Are exporters more likely to introduce prod-uct innovations? - Ld'A: Massimiliano Brattiand Giulia Felice, March 2010

• Network and border effects: where do for-eign multinationals locate in Germany? -IAW: Julia Spies, March 2010

• Firm size and the extensive margin - IEHAS:Laszlo Halpern and Balazs Murakozy, April2010

• The global operations of European firms –Second Efige Policy Report - Giorgio BarbaNavaretti,Ld'A, Matteo Bugamelli,Bank ofItaly, Fabiano Schivardi, CEPR, CarloAltomonte, Bruegel, Daniel Horgos Ld'A andDaniela Maggioni, Ld'A, June 2010

• Clustering the winners: the French policy ofcompetitiveness clusters - CEPII: LionelFontagné, Pamina Koenig , Florian Maynerisand Sarah Poncet, July 2010

• Product adjustments: a firm-level analysisof the impact of a real exchange-rate shock- CEPR: Andreas Moxnes and Karen-HeleneUlltveit-Moe, July 2010

• Export growth and factor market competi-tion: theory and some evidence - Ld'A:Julian Emami Namini, Giovanni Facchiniand Ricardo A. Lopez, December 2010

Events

Conferences

18 June 2010EFIGE Scientific Workshop and PolicyConference


• Organiser: Bruegel and Bank of Italy • Location: Rome, Italy• Attendees: 70• Main speakers: Michel Barnier (European

Commission, Internal Market), Mario Draghi(Bank of Italy).

Workshops

11 January 2010EU 2020: Building blocks for Europe’s growthand employment strategy• Organiser: Bruegel• Location: Bruegel, Brussels• Contributors: Gilles Briatta (SGAE, Paris),

Lorenzo Codogno (Ministry of Finance,Rome, and EPC), Claudia Dörr (Ministry ofEconomics, Berlin), Gert-Jan Koopman(European Commission, DG ECFIN), PiotrSerafin (UKIE, Warsaw), Michel Servoz(SecGen), Robert Verrue (EuropeanCommission, DG Employment), and Bruegelfellows Carlo Altomonte, Jean Pisani-Ferry,André Sapir, Nicolas Véron and Jakob vonWeizsäcker.

22 February 2010Mission-Oriented CC RTD• Organiser: Bruegel • Location: Bruegel, Brussels• Contributors: Stephen Boucher (European

Climate Foundation), Jean-ClaudeBurgelman (European Commission, DGRTD), Mathias Dewatripont (ULB), PeterDröll (European Commission, DGEnterprise), Dominique Foray (EPFL,Lausanne), Bronwyn Hall (Berkeley), GeorgLicht (ZEW), Andreu Mas-Colell (UPF),Stefaan Vergote (European Commission, DGClimate Action), Peter Zapfel (EuropeanCommission, DG Climate Action).

27 April 2010The economic impact of private equity invest-ment• Organiser: Bruegel • Location: Bruegel, Brussels• Contributors: Martin Baily (Brookings), Vitor

Gaspar (Bank of Portugal), Olivier Guersent

(European Commission, CabinetCommissioner Barnier), Andrew Joy(Cinven), Josh Lerner (Harvard BusinessSchool), John Monks (ETUC), VincenzoMorelli (TPG Capital), Ludovic Phalippou(University of Amsterdam), Jim Pittman(Public Sector Pension Investment Board ofCanada), Peter Praet (National Bank ofBelgium), Joseph Rice (Clayton Dubilier &Rice), Per Strömberg (SIFR), Ieke van denBurg (former MEP), John Van Reenen (LSE),Richard Wilson (Apax Partners), andBruegel fellows Nicolas Véron and ReinhildeVeugelers.

26 May 2010Bruegel – Finance and growth: evidence andtrajectories in Europe• Organiser: Bruegel• Location: Bruegel, Brussels• Contributors: Ray Barrell (NIESR), Laurent

Clerc (Banque de France), Boris Cournède(OECD), Michel Dietsch (University ofStrasbourg), Charles Goodhart (LSE), JordiGual (La Caixa), Joerg Rocholl (ESMT),Martin Spolc (European Commission, DGMARKT).

31 May 2010Bruegel – The global operations of Europeanfirms• Organiser: Bruegel• Location: Bruegel, Brussels• Speakers: Giorgio Barba Navaretti

(University of Milan and Centro Studi Lucad'Agliano) and Matteo Bugamelli (Bank ofItaly).


8 November 2010Bruegel – Policy Brief Launch Young leadinginnovators and EU's R&D intensity gap• Organiser: Bruegel• Location: Bruegel, Brussels• Speakers: Reinhilde Veugelers (Senior

Fellow, Bruegel and Professor, KUL), MicheleCincera (Scientific Fellow, IPTS andAssociate Professor, ULB), Waldemar Kütt


(European Commission, CabinetCommissioner Geoghegan-Quinn), RichardHudson (CEO and Editor, Science Business),Matthew Heim (Senior Director, GovernmentAffairs & Counsel, Qualcomm).

Seminars

16 September 2010Bruegel – Competition policy in the knowledgeeconomy• Organiser: Bruegel• Location: Bruegel, Brussels• Speakers: Lars-Hendrik Röller (ESMT), Paul

Seabright (Toulouse School of Economics),Hal Varian (Google), and Bruegel fellowsAndré Sapir and Reinhilde Veugelers.

Lunchtalk@bruegel

26 April 2010Bruegel – The economic impact of ICT• Organiser: Bruegel• Location: Bruegel, Brussels• Speakers: Gerard De Graaf (European

Commission , General Secretariat), LucillaSioli (European Commission, DG INFSO) andJohn Van Reenen (London School ofEconomics).

D. COMPETITION AND REGULATION IN A MOREINTERVENTIONIST EUROPE

Areas of focus:The new discussion on state intervention

Research team:Coordinator: Reinhilde Veugelers. Contributors: Philippe Aghion, André Sapir andNicolas Véron

The trade-offs of financial regulatory reform

Research teamCoordinator: Nicolas VéronContributor: Zsolt Darvas, BenedictaMarzinotto, Garry Schinasi and Jakob vonWeizsäcker.

Research activitiesResearch on The new discussion on stateintervention was initiated in 2010 but did notgive rise to many publications in the course ofthe year. Publications on industrial policy andon market leadership and technology leader-ship are scheduled for publication in 2011.Similarly a Blueprint on the future of the CAP isscheduled for 2011. The project on corporatechampions was significantly delayed.

Within The trade-offs of financial regulatoryreform, more than 10 publications werelaunched and a series of workshops and meet-ings took place, as indicated below.Additionally twelve seminars took place,among which the well established event seriesFinance Focus Breakfasts, coordinated bysenior fellow Nicolas Véron, continues to servemarket participants, policymakers and aca-demics interested in financial market issues.

Research Publications

Bruegel publications• Financial-transaction tax: small is beautiful,

Policy Contribution, Zsolt Darvas, Jakob vonWeizsäcker, February 2010

• The role of state aid control in improvingbank resolution in Europe, Policy


Contribution, Mathias Dewatripont, PeterPraet and André Sapir, May 2010

• The relationship between health andgrowth: when Lucas meets Nelson-Phelps,Working Paper, Philippe Aghion, September2010

• Young leading innovators and EU's R&Dintensity gap, Policy Contribution, MicheleCincera, Reinhilde Veugelers, September2010

• Not all financial regulation is global, PolicyBrief, Stéphane Rottier, Nicolas Véron,September 2010

• An assessment of the G20’s initial actionitems, Policy Contribution, Stephane Rottier,Nicolas Véron , September 2010

• The unequal effect of new banking rules inEurope, Policy Contribution, BenedictaMarzinotto, Jörg Rocholl, October 2010

• Reform of the global financial architecture,Working Paper, Garry Schinasi, October2010

• EU financial regulatory reform: a statusreport, Policy Contribution, Nicolas Véron,December 2010

External publications:• The EU and financial regulation: power with-

out purpose?, Elliot Posner, Nicolas Véron,Journal of European Public Policy 17-3,March 2010

• The role of state aid control in improvingbank resolution in Europe, PolicyContribution, André Sapir, MathiasDewatripont, May 2010

• Market integration and technological lead-ership in Europe, René Belderbos & LeoSleuwaegen & Reinhilde Veugelers,European Economy Economic Papers 403,Directorate General Economic and MonetaryAffairs, European Commission, 2010

• Financial stability and policy cooperation,Working Paper, Banco de Portugal,Economics and Research Department, VítorGaspar, Garry Schinasi, July 2010

• La crisis bancaria en Europa, Nicolas Véron,Anuario Internacional CIDOB, Centro deEstudios y Documentacion Internacional deBarcelona, July 2010

• On young highly innovative companies:why they matter and how (not) to policysupport them, Cédric Schneider & ReinhildeVeugelers, Industrial and Corporate Change,Oxford University Press, vol. 19(4), pages969-1007, August 2010

• La Normalisation comptable internationalaprès David Tweedie, Nicolas Véron, Revued’Economie Financiere, December 2010

Events


30 March 2010Towards Economic Union: A new Strategy forthe Single Market• Organiser: Bruegel and Bureau of European

Policy Advisers (BEPA)• Location: European Commission, Brussels• Contributors: Marco Buti (Director General,

European Commission, DG ECFIN), DanielDaianu (Professor of Economics, SNSPA,Bucharest, Former Finance Minister ofRomania and former MEP), Mario Monti(President, Bocconi Univeristy, formerEuropean Commissioner and Bruegel hon-orary chairman), Jean Pisani-Ferry(Bruegel), Paola Testori Coggi (DirectorGeneral, European Commission, DG SANCO),Robert Verrue (Director General, EuropeanCommission, DG EMPL).

2 June 2010The new UK government speaks on financialservices reform• Organiser: Bruegel, HM Treasury• Location: Bruegel, Brussels• Speakers: Mark Hoban (Financial Secretary

to the Treasury, UK), Nicolas Véron(Bruegel)

9 July 2010Improving Corporate Governance in theFinancial Sector in the EU• Organiser: Bruegel, National Bank of

Belgium• Location: National Bank of Belgium,

Brussels


• Contributors: Peter Praet (National Bank ofBelgium), Jean-Paul Servais (CBFA),Nicolas Véron (Bruegel), David Wright(European Commission).

4 October 2010What makes evidence-based social policies?• Organiser: Bruegel• Location: Bruegel, Brussels• Contributors: Martin Hirsch (French former

high-commissioner for workfare policy),experts from European Institutions andBruegel.

12 October 2010Corporate governance of state owned enter-prises• Organiser: Bruegel• Location: Bruegel, Brussels• Contributors: Dominika Baltowska (Chief

specialist at the Economic Council to thePrime Minister of Poland), Ralph De Haas(Senior Economist at Office of the ChiefEconomist, EBRD), Dag Detter (FormerPresident of Stattum and Former Director atthe Swedish Ministry of Industry), JeanPisani-Ferry (Bruegel), Agata Wacławik-Wejman (President of INPRIS, Poland).


31 August 2010Not all financial regulation is global • Organiser: Bruegel• Location: Bruegel, Brussels• Contributors: Ulrike Guerot (ECFR),

Stéphane Rottier (National Bank ofBelgium), Nicolas Véron (Bruegel).

21 September 2010The unequal effect of new banking rules inEurope• Organiser: Bruegel• Location: Bruegel, Brussels• Contributors: Benedicta Marzinotto

(Bruegel), Jörg Rocholl (ESMT & Bruegel)and Alexander Schulz (Bundesbank).

Lunchtalk@bruegel

31 May 2010Evolution and Practice of Anti-Monopoly Law inChina• Organiser: Bruegel• Location: Bruegel, Brussels• Contributors: Stephen Kinsella (Sidley

Austin), Lars-Hendrik Röller (ESMT andBruegel), Chanqi Wu (Beijing University).

4 June 2010A macroprudential policy mechanism for themanagement of credit supply• Organiser: Bruegel• Location: Bruegel, Brussels• Speaker: Charles Haswell (HSBC)

Bruegel Economic Policy Seminar

9 February 2010Regulating Financial Markets and Institutions• Organiser: Bruegel• Location: Bruegel, Brussels• Speaker: Richard Portes (London Business

School, CEPR)

8 July 2010Do Product Market Regulations in UpstreamSector Curb Productivity Growth? Panel DataEvidence for OECD Countries• Organiser: Bruegel • Location: Bruegel, Brussels• Contributors: Jacques Mairesse (CREST,

INSEE, National Bureau of EconomicResearch –NBER, University of Maastricht),Giuseppe Nicoletti (OECD), Johannes VanBiesebroeck (KU Leuven, CEPR and NBER).


12 January 2010Financial System Reform for the 21st Century:Glass-Steagall Redux?• Organiser: Bruegel• Location: Bruegel, Brussels• Contributors: Vitor Gaspar (BEPA), Alberto

Giovannini (Director General, UnifortuneAsset Management).


23 February 2010Are we on a path towards financial deglobali-sation?• Organiser: Bruegel• Location: Bruegel, Brussels• Contributors: Baudoin Regout (McKinsey

Global Institute), Charles Roxburgh(Mckinsey Global Institute).

23 March 2010The Challenge of taxing systemic risk• Organiser: Bruegel• Location: Bruegel, Brussels• Contributors: Peter Grasman (European

Commission, DG ECFIN), Ulich Klüh(German Council of Economic Experts),Enrico Perotti (University of Amsterdam).

3 June 2010‘The Future of Central banking': A book byHoward Davies and David Green• Organiser: Bruegel• Location: Bruegel, Brussels• Contributors: Howard Davies (LSE), David

Green (UK Financial Reporting Council),Peter Praet (National Bank of Belgium).

8 July 2010The Derivatives Clearing Reform: What Is atStake?• Organiser: Bruegel• Location: Bruegel, Brussels• Contributors: Matthias Graulich (Eurex

Group), Sebastijan Hrovatin (EuropeanCommission), Andrew Hudis (GoldmanSachs).

20 July 2010FSB and its efforts to reduce moral hazardrisks of SIFI's• Organiser: Bruegel• Location: Bruegel, Brussels• Contributors: Eva Hüpkes (Financial

Stability Board), Mario Nava (EuropeanCommission, DG MARKT); Stéphane Rottier(National Bank of Belgium).

21 October 2010How Will the New European FinancialSupervisors Work in Practice?• Organiser: Bruegel• Location: Bruegel, Brussels• Contributors: Fabrice Demarigny (Head of

Capital Market Activities, Mazars Group),Mats Persson (Director, Open Europe),Arnoud Vossen (Secretary General,Committee of European BankingSupervisors).

19 November 2010Taking Stock of the Vienna Initiative• Organiser: Bruegel• Location: Bruegel, Brussels• Contributors: Erik Berglof (EBRD), Rainer

Münz (Erste Group), György Surányi(Intesa Sanpaolo), Shahin Vallée (BNPParibas & Bruegel).

16 December 2010A Global Risk Map: Is It Feasible? How To Do It?• Organiser: Bruegel• Location: Bruegel, Brussels• Contributor: Jan Pieter Krahnen (Professor

of Finance, Goethe University, Frankfurt)


One dinner of the Bruegel Economic Club wasdevoted to Competition and regulation in themore interventionist Europe:

• 8 March 2010 - Bruegel Economic ClubDinner with Mario Monti (President, BocconiUniversity, Honorary President, Bruegel)


E. CLIMATE AND ENERGY IN THE POST-COPENHAGEN CONTEXT

Areas of focusDrivers of green innovation and growth andtheir impact on European industry andinternational trade; Border CarbonAdjustments; Cross-country distributionaleffects

Research teamCoordinator: Georg ZachmannContributor: Philippe Aghion, Henrik Horn,André Sapir and Reinhilde Veugelers

Research activitiesOn green innovation, Reinhilde Veugelers pub-lished a paper on whether the EU ClimateChange Policy mobilises innovation. The papermakes the point, that the lack of a predictableand high carbon price challenges the neces-sary investments in green innovation. In thespecial event series, three sessions weredevoted to green innovation. Finally, a pro-posal for a project dealing with green innova-tion for the European research frameworkprogramme was prepared.

On the Cross-country distributional effectsarea, the policy brief ‘Is European climatepolicy the new CAP?’ was published in January2011. The study made the point that theadverse economic effects of the ETS arelargely compensated at the national level.Apart from these three main areas, work onthe design of energy markets in the EU wasundertaken, resulting in the Policy Brief “Powerto the people of Europe”; a conference onsupply security; an event on the interaction ofnetworks as well a workshop on “smart grids”.In the context of the upcoming infrastructurelegislation and the move towards the comple-tion of the internal market research has beenconducted that will lead to further output in2011.

Seven publications were launched and numer-ous of events took place. The special eventseries Energy and Climate Exchange contin-ued throughout 2010 (listed below).

Coordinated by Georg Zachmann, this series ofevents is specially targeted at market partici-pants, policymakers and academics interestedin Climate and energy issues.

Research Publications

Bruegel publications• Power to the people of Europe, Policy Brief,

Georg Zachmann, April 2010• EU Climate Change Policy: Mobilising

Innovation?, Bruegel Paper, ReinhildeVeugelers, October 2010

• Rare earth - no case for government inter-vention, G20 Monitor, Georg Zachmann,November 2010

External publications• Catching the maximum market value of

electricity storage – technical, economicand regulatory aspect, Xian HE & GeorgZachmann, 2010," RSCAS Working Papers2010/02, European University Institute

• The Dynamics of Global Crude OilProduction, Aleksandar Zaklan & GeorgZachmann & Anne Neumann, 2010,Discussion Papers of DIW Berlin 1075, DIWBerlin, German Institute for EconomicResearch

• Inefficient arbitrage in inter-regional elec-tricity transmission, Derek Bunn & GeorgZachmann, Journal of RegulatoryEconomics, Springer, vol. 37(3), pages 243-265, June 2010

• Plädoyer für eine europäische Netzplanung,Georg Zachmann, EurActiv YellowPaper:EUEnergiepolitik(http://www.euractiv.de/fileadmin/user_upload/documents/YellowPaper_EU_Energiepolitik.pdf)

• Combining Energy Networks: What happensto Belgian electricity prices when Russiacuts the gas for East Europe? with HennesWeigt (European University Institute), 17November 2010


Events

Conferences

14 October 2010European Energy Supply Security• Organiser: Bruegel• Location: Bruegel, Brussels• Main Speakers: Jean Michel Glachant

(Florence School of Regulation), FrancoisLevêque (Ecole des Mines de Paris), CécileMaisonneuve (AREVA), Bill Nuttal(University of Cambridge), Ignacio Perez-Arriaga (MIT, Comillas), Sophia Ruester(Florence School of Regulation), Jean-Arnold Vinois (European Commission, DGENER), Christian Von Hi.rschhausen (BerlinUniversity of Technology), Georg Zachmann( Bruegel)

• Further contributors: Dries Acke (ECFEnergy Strategy Centre), Kavita Ahluwalia(E3G), Arno Behrens (CEPS), DanieleBenintendi (Fondazione Eni Enrico Mattei -FEEM), Mukund Bhagwat (Aurubis Belgiumnv), Amber Cosentino (US Mission to theEU), Andreas Ehrenmann (GDF Suez),Zacharie Gross (AREVA), Peter Koh (Mlex),Sanjeev Kumar (E3G), Anta Ndoye Faye(Bruegel), Elsa Özmen (EuropeanCommission), Edith Pike-Biegunska (RAP -Regulatory Assistance Project), JulianPestiaux (European Commission), AuréliePortalier (Le Cercle de l'Industrie), MildaUrbonaite (Chief Specialist,Ministry ofEnergy, Lithuania), Pierre Wunsch (Cabinetof the Deputy Prime Minister and Minister ofFinance, Belgium), Hengyuan Yan (ChinaEconomic Daily)

Workshops

8 June 2010Energy and climate scenarios to 2050: policyinsights from the EC sponsored project PLAN-ETS• Organiser: Bruegel, Fondazione Eni Enrico

Mattei (FEEM)• Location: Bruegel, Brussels• Contributors: Jos Delbeke (European

Commission, DG Climate Action), AlainHaurie (Ordecys and University of Geneva),Martin Huemer (European Commission, DGRTD), Filip Johnsson (Chalmers University),Bob Van Der Zwaan (ECN), Massimo Tavoni(FEEM) and Reinhilde Veugelers, GeorgZachmann (Bruegel).


7 June 2010Power to the People of Europe• Organiser: Bruegel• Location: Bruegel, Brussels• Contributors: Jean Pisani-Ferry (Bruegel),

Matti Supponen (European Commission, DGTREN), Georg Zachmann (Bruegel).

Energy and Climate Exchange

22 February 2010US Technology policy and the development ofsemiconductors, computer hardware, andcomputer software industries in the US: Apolicy model for climate-change R&D?• Organiser: Bruegel• Location: Bruegel, Brussels• Contributor: David C. Mowery (Haas School

of Business U.C. Berkeley & NBER).

31 March 2010The Invention and Transfer of RenewableEnergy Technologies• Organiser: Bruegel• Location: Bruegel, Brussels• Contributor: Nick Johnstone (OECD

Environment Directorate).

4 May 2010Have the costs of achieving 2 Celsius beenunder-reported? An analysis of integratedassessment model results• Organiser: Bruegel• Location: Bruegel, Brussels• Contributor: Massimo Tavoni (FEEM and

Princeton University).

11 June 2010Taxation, Innovation and the Environment


• Organiser: Bruegel• Location: Bruegel, Brussels• Contributor: Michael Ash (OECD).

28 October 2010Smart Grid Investments and NetworkRegulation: Who Is In Charge?• Organiser: Bruegel• Location: Bruegel, Brussels• Contributor: Per Agrell (UCL & FEEM).

17 November 2010Combining Energy Networks: What happens toBelgian electricity prices when Russia cuts thegas for East Europe• Organiser: Bruegel• Location: Bruegel, Brussels• Contributor: Hennes Weigt (European

University Institute)



MEDIA AND COMMUNICATION

Media impact

Bruegel’s presence in the press has improvedconsiderably across all media during 2010.Editorial coverage increased by 61 percentwith 1895 Bruegel mentions in the media in2010, compared to 1176 in 2009.

Coverage in Bruegel’s target media hasincreased by 65 percent in 2010, whichreflects the additional effort made to reach tar-geted audiences. Similarly, Bruegel is promi-nent in the key international media (FinancialTimes, New York Times, International HeraldTribune, Wall Street Journal, The Economistand Time), where the number of mentions hasgrown by 92 percent to 129 mentions in thetwelve months to 31 December 2010.

In terms of the type of articles published, therehas been a huge increase in the number ofopinion pieces, with 600 op-eds published in2010 compared to 132 in 2009. The increaseis mainly due to the use of a syndication serv-ice which provides a better distribution net-work. Of the total 600 opinion piecespublished, 147 were placed in target media.

Looking at geographical spread Bruegel had animpressive presence in media across morethan 75 countries in different regions, with aprominent presence in Europe from where 47%of the mentions come. More importantly,Bruegel has prominent presence ininternational media (ie. media with readershipin more than one region), where the number ofmentions increased by 92 percent to 248 in2010 compared to 129 mentions the previousyear.

Additionally Bruegel has continued improvingits presence in the broadcast media with morethan 100 interviews for both TV and radio. Wehave also defined a better focus on blogswhich have proven to be very influential andBruegel’s presence on the online media andblogs has increased by 13 percent to 345,which shows a growth opportunity in this typeof media.

Website

Bruegel’s website is the backbone of Bruegel’sdissemination strategy as it serves as arepository of all Bruegel publications, pub-lished and archived online. It also serves as aplatform for the promotion of events and otheractivities. In 2010 there were 142,438 visitsto the website from 95,015 unique visitors.

During 2010 Bruegel developed a new websitelaunched in 2011, featuring a complete newdesign and better content architecture to meetthe requirements of the growing number ofitems produced by Bruegel.

Looking at geographical spread, most of thevisits came from Europe and the United States.However, the website recorded hits from morethan 100 countries, reflecting the relevance ofBruegel’s research beyond Europe and the US.

It is interesting to note that visits to the web-site peaked in November at 20,000 uniquevisits due to the interest generated by thelaunch of Bruegel Blueprint A European mecha-nism for sovereign debt crisis resolution: aproposal.


FUNDED RESEARCH PROJECTS

Bruegel now benefits from a number of fundedresearch projects. These are funded byInternational or European institutions, as wellas by private entities and cover activities suchas research, project management and disse-mination. Funded research projects at Bruegelrepresent around 15% of Bruegel’s annualincome.

Grants awarded to Bruegel in 2010

Project Name: Study on reform options for theglobal reserve system and their implicationsfor the EU economyProject in partnership with Centre d'EtudesProspectives et d'Informations Internationales(CEPII)Description: Develop, analyse and evaluatedifferent options for reform and/or scenariosfor plausible market-driven developments ofthe global reserve currency system.Duration: September 2010-August 2011Funding Organisation: European Commission,Directorate General for Economic and FinancialAffairs

Project Name: Development of the Asia EuropeEconomic ForumProject in partnership with Centre d'EtudesProspectives et d'Informations Internationales(CEPII), Center for Economic Policy Research(CEPR), Asian Development Bank Institute(ADBI)Description of Research Project: Following thesuccess of the AEEF in 2006-2009, DG ECFINhas agreed to grant funding to strengthen thepartnership by setting up a formal networkwhich would support the organisation of a2010 and a 2011 conferences and the settingup of dissemination activities. Funding hasalso been given the AEEF partners: CEPRthrough their FP7 PEGGED project; ADBI);French Ministry of Finance and KoreanEmbassy.Duration: January 2010-January 2011Funding Organisations: European Commission,Directorate General for Economic and Financial

Affairs; European Commission, DG Research(FP7 PEGGED project); Asian DevelopmentBank

Projects conducted during 2010(grants awarded to Bruegel in 2009)

Project Name: The Transatlantic Relationshipin an Era of Growing Economic MultipolarityProject in partnership with the PetersonInstitute for International EconomicsDescription of Research Project: Identify andanalyse the dynamics of the economic andpolitical subject areas that will in the comingyears dominate the policy agenda of both theexternal EU-U.S. engagement with major emer-ging economies, as well as bilaterally acrossthe Atlantic.Project Duration: January 2010-December2011Funding Organisation: European Commission,DG RELEX

Project Name: Provision of external expertisein monetary and economic policies Description of Research Project: Provision ofbriefing notes which give a critical and inde-pendent analysis of the monetary policy of theEuropean Central Bank as well as evaluategeneral issues in connection with monetary,economic and fiscal policies in the EU.Project Duration: September 2009-August2014Funding Organisation: European Parliament –Economic and Scientific Policy Department

Project Name: Strategic Partnership agreementwith the German Marshall FundDescription of Research Project: The strategicpartnership is to leverage Bruegel’s intellectualexpertise, GMF’s convening capabilities andnetworks in Washington and across Europe,and GMF’s growing in-house expertise acrossspecific programme areas: Financial Crisis;Central and Eastern European (CEE) econo-mies and economic relations with the CEEcountries; Climate Change Policies andCompetitiveness.Project Duration: Jan 2009-Dec 2011


Funding Organisation: German Marshall Fund

Projects conducted during 2010(grants awarded to Bruegel in 2008)

Project Name: EFIGE - “European Firms in aGlobal Economy: internal policies for externalcompetitiveness”Project in Partnership with: Universidad CarlosIII (Madrid); Centre for Economic PolicyResearch (London); The Institute for AppliedEconomic Research (Tubingen); Centro StudiLuca d’Agliano (Milan); UniCredit (Milan);Centre d’Etudes Prospectives et d’InformationInternationales (Paris); The Institute ofEconomics of Hungarian Academy of Sciences(Budapest)Associate Partners: Bank of France; Bank ofItaly; Bank of Spain; Bundesbank; NationalBank of Belgium; OECDDescription of Research Project: Assessmentof the internationalisation patterns ofEuropean firms through the creation of a pilotdataset, based on a survey of firm-level data in

seven countries (AT, FR, DE, HU, IT, ES, GB).Project Duration: September 2008-September2012Funding Organisation: European Commission,DG Research, 7th Framework Programme

Project Name: The Euro at 10: Time for GreaterTransatlantic Economic Cooperation?Project in partnership with the PetersonInstitute for International EconomicsDescription of Research Project: Series ofconferences: “The Euro at 10: The next globalcurrency?” 10 October 2008, Washington DC;“Transatlantic Comparison of Policy Responsesto the Financial Crisis” 10-11 September2009, Rome; “The Euro and the crisis andbeyond” 17 March 2010, Dallas. TwoConference volumes published for each of thefirst two conferences, along with shorteraction-oriented publications.Project Duration: September 2008 to August2010Funding Organisation: European Commission,DG RELEX


Team Development

The following individuals joined Bruegel during2010:

Christophe Gouardo, Research Assistant,joined Bruegel in July. He holds a MastersDegree in International and DevelopmentEconomics from the University of ParisDauphine, where he has also previouslyworked as a Research Assistant. His researchinterests include finance and developmentissues as well as fiscal policy.

Lucia Granelli, Research Assistant, joinedBruegel in September. She holds a Master’sDegree in Economics from Sapienza Universityin Rome and an MA in European Economicsfrom College of Europe in Bruges. She currentlyis a Ph.D. student in Economics at theEconomics School of Louvain of the LouvainAcademy (Belgium).

Mark Huberty, Visiting Fellow joined Bruegel inOctober. He is a doctoral candidate at theUniversity of California, Berkeley, and aResearch Associate at the BerkeleyRoundtable on the International Economy.Prior to his doctoral work, Mark consulted forinternational firms at A.T. Kearney andAccenture. He holds degrees in Chemistry(Harvey Mudd College) and InternationalRelations (The Johns Hopkins University -SAIS). His research covers the political eco-nomy of energy systems and the connectionbetween climate change action, innovation,and economic growth.

Benedicta Marzinotto, Research Fellow, joinedBruegel in March. She is also a Lecturer inPolitical Economy at the University of Udine

and Visiting Professor at the College of Europe(Natolin Campus). She holds an MSc and aPhD in European Political Economy from theLondon School of Economics. From 2004 to2009, Benedicta was a Research Fellow in theInternational Economics Programme atChatham House and has experience as a free-lance political economic analyst. She has heldvisiting positions at the Free University ofBerlin and at the University of Auckland. Herresearch for Bruegel focuses on EU macroeco-nomic developments, EU Institutions, financeand growth.

Anta Ndoye Faye, Research Assistant, joinedBruegel in August. She holds a Master degreein Econometrics and Financial Markets and aMagistère d'Economiste Statisticien from theUniversity of Toulouse. She is currently a PhDstudent in Microeconometrics at BETA(Strasbourg) and at the Konstanz DoctoralSchool in Quantitative Economics and Finance.Before joining Bruegel, she worked as aTeaching and Research Assistant inMathematics, Microeconomics, Econometricsand Statistics at the University of Strasbourgand the University of Toulouse. Her researchinterests are labour demand, production func-tion theory and competitiveness.

Jörg Rocholl, Visiting Fellow, joined Bruegel inSeptember. He is a professor at the EuropeanSchool of Management and Technology wherehe also holds the Ernst & Young Chair inGovernance and Compliance and is AssociateDean of Faculty. He holds an MPhil and PhDfrom Columbia Business School and anEconomics degree from UniversitätWitten/Herdecke in Germany. His research

interests are in the areas of Corporate Finance,Corporate Governance, and FinancialIntermediation.

Joan de Solà-Morales, Research Assistant,joined Bruegel in September. He holds an MScin Competition and Market Regulation from theBarcelona Graduate School of Economics,jointly awarded by Universitat Pompeu Fabra(UPF) and Universitat Autònoma de Barcelona(UAB). He also holds a Licenciatura inEconomics from UAB. His main research inte-rests revolve around Competition Policy andRegulation.

Shahin Vallée, Visiting Fellow, joined Bruegel inNovember. He is an economist and strategistfor BNP Paribas in London, focusing on Centraland Eastern Europe, the Middle East and Africa(CEEMEA). He has graduate degrees inEconomics and Public Policy from Sciences Po(Paris) and Columbia University (New York)and currently teaches at Sciences Po.

During the course of 2010 Bruegel also bene-fitted from the work of Kenneth Iversen(Research Assistant, February-May). Bruegelis also grateful to all those who completedinternships during 2010: Julian Boulanger,Andy Edgel, Anna Grabowska, Ela Ince, SehajMalik, Rosalba Nardelli, Dharini Parthasarathy,Marco Ricorda and Hendrik Worschech.

Bruegel owes a special thanks to departingFellow Jakob von Weizsäcker. Jakob was pre-sent from Bruegel’s birth and has been aninvaluable member of the team. Apart from hisinsightful contribution to the intellectual life ofBruegel generally, Jakob’s papers include theBlue Card proposal and the Blue/Red Bond pro-posal, both of which are still part of the mains-tream EU policy discourse. We wish Jakob wellin his new post of Head of Department at theThüringen Ministry of Economics, Labour andTechnology.


GovernanceBRU EGE L’ S GO V E R N A NC E F R A M E W OR K I S DE S I GN E D TO E NS U R E BOT H

T H E I N DE P E N DE NC E OF I T S R E S E A R C H A N D I T S R E LE VA NC E TO D I V E R S E

S TA K EHOLDE R S .

Bruegel is registered as a Belgian internationalnon-profit association (AssociationInternationale Sans But Lucratif) under thenumber 0867636096, with registered officeon Rue de la Charité 33, B-1210 Brussels. Thebasis for its governance is formed by itsstatute and bylaws, both of which can bedownloaded from Bruegel’s website.

Since 2010, the association has had threecategories of member. State Members are gov-ernments of member states of the EuropeanUnion that have chosen to join Bruegel;Corporate Members are international firmswhose request for membership has beenapproved by Bruegel’s Board; and InstitutionalMembers currently include the EuropeanInvestment Bank and the EBRD.

Each member appoints a Senior ContactPerson and an Alternate, who represent themember in Bruegel’s governance bodies. Thedetails of Members’ financial contributions aregiven in the ‘Financials’ section of this report.

The General Assembly is Bruegel’s highest gov-erning body, which consists of all members.The General Assembly is complemented by socalled ‘Groups’ which are formed, respectively,by Bruegel’s state and corporate members.

The General Administration Body (organe d’ad-ministration générale under Belgian law) isthe Board, which is entrusted with broad deci-sion-making powers, including senior recruit-ments and the research programme.

The Board has no responsibility for publica-tions and policy positions. In 2010, the

General Assembly met on 24 June for its statu-tory annual meeting and again on 25November to agree subscription levels for2011 and approve the budget. The Group ofStates and Group of Corporate Members alsomet on the same days.

Bruegel’s Board met three times in 2010, on21 January, 23 June and 2 November. It hastwo established sub-committees, the AuditCommittee chaired by Helen Wallace and theCompensation Committee chaired by LeszekBalcerowicz.

The Scientific Council consists of eight interna-tionally recognised economists, appointed bythe Board for a three-year mandate. It advisesBruegel’s Board and Director and assesses thescientific quality of Bruegel’s output. theScientific Council’s chair is Giuseppe Bertola.

Bruegel’s Research Programme is based onextensive consultation with Bruegel’s mem-bers, including at least one plenary meeting ofmembers’ Senior Economists (in November), adraft programme is prepared by Bruegel’sstaff, sent to members for consultation, andproposed to the Board together with the mem-bers’ feedback.

The Board then adopts a research programme.In 2010 Bruegel’s Board, members and man-agement put into place preparations for a ‘twinpeaks’ model of Research Programme: theannual programme will now be supplementedby a medium-term research perspective,agreed by the same process. All of Bruegel’sresearch programmes since 2006 can bedownloaded from Bruegel’s website.


Bruegel’s public Statement on ResearchIntegrity, adopted by the Board in May 2006,is also available on Bruegel’s website. Thestatement sets rules for the avoidance of polit-ical, national or commercial conflicts of inter-est which could harm the integrity of Bruegel’s

Web references:

Bruegel’s statute:

http://www.bruegel.org/fileadmin/bruegel_files/Statutes_and_bylaws/Statuts_Modif_2010_FRENCH_NOV.pdf

Bruegel’s bylaws:

http://www.bruegel.org/fileadmin/bruegel_files/Statutes_and_bylaws/Bylaws_EN_UPDATED_NOV_2010.pdf

2010 research programme:

http://www.bruegel.org/download/parent/5-2010-research-programme/file/977-2010-research-programme/

research. Bruegel’s researchers, including vis-iting fellows and senior staff, promise to abideby this statement when they sign contractswith Bruegel. They also make an annual decla-ration of interests to avoid any conflict ofinterest in the areas in which they work.

I N C O M E S T A T E M E N T 2 0 0 9 - 2 0 0 8


ASSETS

FIXED ASSETS

Furniture and office equipmentIT development

CURRENT ASSETS

Trades receivablesOther debtorsFunded project receivables

CASH AND FINANCIAL ASSETS

DEFERRALS AND ACCRUALS

Deferred rentDeferred insuranceOther deferrals

TOTAL ASSETS

LIABILITIES

CURRENT LIABILITIES

Trade payablesVAT payablePrepaid incomeRemuneration and social security payablesFunded project creditorsAccrued charges

NET ASSETS

NET ASSETS

ReservesSurplus/loss for the yearAccumulated reserves

TOTAL LIABILITIES AND NET ASSETS

B A L A N C E S H E E T 2 0 1 0 - 2 0 0 9

369,571.36

230,375.5014,359.80

705,226.67

45,486.185623.48

120,823.53153,475.48349,252.35212,901.43

1,149,209.76

-149,102.612,678,205.33

369,571.36

949,961.97

3,144,122.28

51,109.66

4,514,765.27

1,985,662.55

2,529,102.72

4,514,765.27

Financial statements

2 0 1 0

283,704.9438,202.03

394,872.4212,600.00

45,963.69

11,761.28

190,445.35408,834.30162,500.00176,207.03415,703.88

7,500.00

-487,940.152,529,102.72

321,906.97

407,472.42

2,765,248.77

57,724.97

3,552,353.13

1,361,190.56

2,041,162.57

3,01 1,638.30

2 0 0 9


REVENUE

Subscriptions – State members (Annex 1)Subscriptions – Corporate members (Annex 1)Subscriptions – Institutional members (Annex 1)

Other revenueHonorariaProject-based funding (Annex 2)Foundation grants (Annex 2)Sales of publicationsTravel expenses refundedFinancial income (gross)Other income

TOTAL REVENUE

EXPENSES

Wages and Compensation

Project-related data collection costs (1)

Other operating expensesStaff travel costs (2)External research costsDocumentation costsOutreach-related costsOffice rent and running costsExternal professional services (3)Financial charges

Depreciation charges

TOTAL EXPENSESSurplus/deficit before extraordinary chargesExtraordinary items/bad debts (4)Surplus/deficit after extraordinary charges

2 0 1 0

I N C O M E S T A T E M E N T 2 0 1 0 - 2 0 0 9

4,886.041,103,467.26

134,356.201,861.05

31,876.5521,410.52

-148,662.22-24,700.62-28,889.01

-345,680.27-341,078.63-138,915.70

-7,459.37

1,966,467.00808,333.33

50,000.00

1,276,447.10

4,122,657.95

-2,329,733.25

-626,731.60

-1,035,385.82

-139,933.58

-4,131,784.25-9,126.30

-139,976.31-149,102.61

2 0 0 9

18,888.141,399,941.00

175,859.00419.18

30,073.858,736.76

47,042.68

-136,308.00-43,906.00-37,007.00

-255,646.00-368,286.00-154,701.00

-6,968.00

2,085,864.00889,166.67

87,500.00

1,680,960.61

4,743,491.28

-2,642,776.00

-1,307,090.40

-1,002,822.00

-128,742.00

-5,081,430.40-337,939.12-150,000.00-487,939.12

Notes:(1) Direct costs for the EFIGE survey, outsourced to a third party.(2) Net travel costs (travel costs – travel refunds) equalled €106.234,15 in 2010 and €116.785,67 in 2009.(3) In 2010 €20,000 was spent on the three-yearly independent review.(4) Extraordinary items in 2010 – writing off of unpaid corporate subscriptions.


ANNEX 1: CORE FUNDING2010 2009 Notes

Subscriptions – State MembersCategory 1 126,416.00 100,329.00Cyprus 31,604.00 30,099.00Lithuania 31,604.00 10,032.00 Joined 2009Luxembourg 31,604.00 30,099.00Slovenia 31,604.00 30,099.00

Category 2 63,208.00 60,198.00Ireland 63,208.00 60,198.00

Category 3 568,872.00 541,782.00Austria 94,812.00 90,297.00Czech Republic 94,812.00 90,297.00Denmark 94,812.00 90,297.00Finland 94,812.00 90,297.00Hungary 94,812.00 90,297.00Sweden 94,812.00 90,297.00

Category 4 379,248.00 361,188.00Belgium 126,416.00 120,396.00Netherlands 126,416.00 120,396.00Poland 126,416.00 120,396.00

Category 5 948,120.00 902,970.00France 189,624.00 180,594.00Germany 189,624.00 180,594.00Italy 189,624.00 180,594.00Spain 189,624.00 180,594.00United Kingdom 189,624.00 180,594.00

Subscriptions – Corporate Members 889166.67 808333.33Areva 50,000.00 50,000.00BNP Paribas Fortis 50,000.00 50,000.00BP 50,000.00 50,000.00Deutsche Bank 50,000.00 50,000.00Deutsche Telekom 50,000.00 50,000.00EDF 50,000.00 50,000.00Ernst & Young 35,000.00 0 Joined 2010Erste Bank 41666.67 0 Joined 2010France Telecom 50,000.00 50,000.00GDF Suez 50,000.00 50,000.00Goldman Sachs 50,000.00 50,000.00Google 25,000.00 0 Joined 2010IBM 0 50,000.00 Lapsed 2009Microsoft 8,333.33 0 Joined 2010Nokia 0 50,000.00 Lapsed 2009Novartis 50,000.00 50,000.00Pfizer 50,000.00 50,000.00Qualcomm 29166.67 0 Joined 2010Renault 50,000.00 50,000.00Samsung 50,000.00 50,000.00Syngenta 50,000.00 8,333.33Unicredit 50,000.00 50,000.00

Subscriptions – Institutional Members 87,500.00 50,000.00European Investment Bank 50,000.00 50,000.00European Bank for Reconstructionand Development

37,500.00 0 Joined 2010


ANNEX 2: PROJECTS AND GRANTSPROJECTS GRANTS

2010 Funding source EFIGE EPECON EURO@10 TRAREL ECF GMFEuropean Climate Foundation 27,480.00

European Commission - DG RELEX 13,146.15 29,111.45

European Commission 7thFramework Programme

1,069,897.27

European Parliament ECON com-mittee

20,200.00

German Marshall Fund 148,378.96

UniCredit (member of EFIGEconsortium)

257,585.68

Aggregate project costs 1,601,470.15 20,200.00 13,146.15 29,111.45 0 0

Contribution to overhead costs -273,987.20 0 0 0 27,480.00 148,378.96

Note: The European Commission also directly paid the costs of accommodation and travel for the Asia Europe Economic Forum conference inJapan in 2010 (circa €75,000)

2009 Funding source EFIGE EPECON EURO@10 ECF GMFEuropean Climate Foundation 18,320.00

European Commission - DG RELEX 97,400.87

European Commission 7thFramework Programme

628,549.83

European Parliament ECON com-mittee

8,600.00

German Marshall Fund 116,036.20

UniCredit (member of EFIGEconsortium)

368,916.56

Aggregate project costs 817,577.27 8,600.00 97,400.87 0 0

Contribution to overhead costs 179,889.12 0 0 18,320.00 116,036.20


Auditor’s reportMarie-Chantal DEBROUX-LEDDETRéviseur d’entreprisesAvenue Jean-François Debecker, 114, 1200 Brussels, BelgiumTel. 00 32 2 775 88 20 • Email: [email protected]

AISBL International AssociationBRUEGEL, Rue de la charité, 33 - 1210 Brussels - Belgium

STATUTORY AUDITOR’S REPORT FOR THE YEAR ENDED DECEMBER 31, 2010to the General Assembly of the International Association to be held in June 2011

In accordance with the legal and statutory requirements, we report to you on the performance of the mandate of statutory audi-tor, which has been entrusted to us. This report contains our opinion on the true and fair view of the financial statements as wellas the required additional statements and information.

Unqualified audit opinion on the financial statements

We have audited the financial statements for the year ended 31 December 2010, prepared in accordance with the financial report-ing framework applicable in Belgium, which show a balance sheet total of €3,402,353.13 and a deficit for the year of€487,939.12.

Management is responsible for the preparation and the fair presentation of these financial statements. This responsibilityincludes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financialstatements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate account-ing policies; and making accounting estimates that are reasonable in the circumstances.

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accor-dance with the legal requirements and the Auditing Standards applicable in Belgium, as issued by the Institute of RegisteredAuditors. Those standards require that we plan and perform the audit to obtain reasonable assurance whether the financial state-ments are free from material misstatement, whether due to fraud or error.

In accordance with the above-mentioned auditing standards, we considered the association’s accounting system, as well as itsinternal control procedures. We have obtained from management and from the association's officials the explanations and infor-mation necessary for executing our audit procedures. We have examined, on a test basis, the evidence supporting the amountsincluded in the financial statements. We have assessed the appropriateness of accounting policies and the reasonableness of thesignificant accounting estimates made by the association as well as the overall financial statement presentation. We believe thatthese procedures provide a reasonable basis for our opinion.

In our opinion, the financial statements for the year ended December 31, 2010 give a true and fair view of the association’s assetsand liabilities, its financial position and the results of its operations in accordance with the financial reporting framework applica-ble in Belgium.

Additional statements and information

The compliance by the international association with the Law of 27 June 1921 related to non profit associations, international not-for-profit associations and foundations is the responsibility of management.

Our responsibility is to supplement our report with the following additional statements (and information), which do not modify ouraudit opinion on the financial statements:

• Without prejudice to formal aspects of minor importance, the accounting records were maintained in accordance with the legaland regulatory requirements applicable in Belgium.

• There are no transactions undertaken or decisions taken in violation of the association's statutes or the Law of 27 June 1921related to not-for-profit associations, international non profit associations and foundations that we have to report to you.

Brussels, 1 June 2011

Marie-Chantal DEBROUX-LEDDETCertified Auditor


BOARD

Leszek Balcerowicz, Chairman of Bruegel,Professor of Economics, Warsaw School ofEconomicsJosé Manuel Campa, Secretary of State forEconomic Affairs, Ministry of Economy andFinance, SpainAnna Ekström, General Manager, Skolverket – theSwedish National Agency for EducationJan Fischer, Vice President, Operational Policies,European Bank for Reconsturtion and Development(EBRD) Vittorio Grilli, Director General, Treasury – Ministryof Economy and Finance, ItalyWolfgang Kopf, Senior Vice President for Public andRegulatory Affairs, Deutsche TelekomRainer Münz, Head of Research & Development,Erste GroupJim O‘Neill, Chairman, Goldman Sachs AssetManagement (GSAM)Lars-Hendrik Röller, President, European School ofManagement and Technology (ESMT)Dariusz Rosati, Professor, Warsaw School ofEconomic Policy and International EconomicsHelen Wallace, Centennial Professor, EuropeanInstitute, London School of Economics and PoliticalScience

SCIENTIFIC COUNCIL

Giuseppe Bertola, Chairman of the ScientificCouncil, Professor of Economics, Università diTorinoSergei Guriev, Morgan Stanley Professor ofEconomics and Rector, New Economic School inMoscowPeter Neary, Professor of Economics, OxfordUniversityLucrezia Reichlin, Professor of Economics, LondonBusiness SchoolDani Rodrik, Professor of International PoliticalEconomy, John F. Kennedy School of Government atHarvard UniversityPaul Seabright, Professor, Toulouse School ofEconomicsJaume Ventura, Professor and Senior Researcher atthe Centre de Recerca en Economia Internacional(Barcelona)Luigi Zingales, Robert C. McCormack Professor ofEntrepreneurship and Finance, University ofChicago Graduate School of Business

Bruegel’s people


STAFF (as at 1 June 2011)

DirectorJean Pisani-Ferry

Research: Resident ScholarsZsolt DarvasBenedicta Marzinotto André Sapir Reinhilde Veugelers Nicolas Véron Guntram B. Wolff Georg Zachmann

Research: Non Resident ScholarsPhilippe Aghion Alan Ahearne Jürgen von Hagen Henrik Horn Dalia Marin Gianmarco Ottaviano Bruno van Pottelsberghe Jakob von Weizsäcker

Research: Visiting ScholarsCarlo Altomonte Ignazio Angeloni Mark Huberty Jörg Rocholl Garry Schinasi Shahin Vallée

Research AssistantsTommaso AquilanteChristophe GouardoLucia Granelli Silvia Merler Anta Ndoye Joan de Solà-Morales

Development, communications, operations, partner-ships management (in alphabetical order):

Director for Development and CommunicationsAndrew Fielding

Elodie Colson, Research Partnerships Officer Anna Grabowska, Research Partnerships Officer Matt Dann, Secretary GeneralStephen Gardner, EditingNaiara Martinez Cabrera, Communication ManagerDelphine Michel, Research Partnership ManagerSona Patel Amin, Accounting and HR OfficerMarco Ricorda, Communication OfficerSarah Roblain, Administrative AssistantMatilda Sevón, Events CoordinatorAnn Van Gyseghem, Executive Assistant


BRUEGEL33, rue de la Charité, Box 4

1210 Brussels, Belgium

http://www.bruegel.org

Telephone +32 2 227 [email protected]

annual report 2010 - bruegel · bruegel’s annual report 2010 page 7 tives markets. but major...

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