The Greening of the Economic and Monetary Union

Armin Steinbach
Additional contact information
Armin Steinbach: HEC Paris

No 1450, HEC Research Papers Series from HEC Paris

Abstract: All pillars of the Economic and Monetary Union (EMU) recently unleashed an array of measures to transform the economy towards climate neutrality. With the Green Deal, the ECB’s Strategy Review and the growing body of sustainable finance legislation, climate considerations have entered the traditional mandates governing the conduct of financial, fiscal and monetary policy. The cross-sectional nature of climate issues reinforces the interdependence and coordination of EMU policies. The present study explores changes to EMU architecture and discusses the institutional and legal implications of the novel role of climate in the coordination of EMU policies. It addresses the relationship between Treaty mandate and policy leeway, specifically the way in which the European Central Bank extends its focus on price stability to account for climate considerations and the fiscal legal framework relies on flexibility to incentivize climate investment. It also tracks the emergence of climate stability as an EMU concept adding to existing concepts of price, fiscal and financial stability.

Keywords: Climate policy; monetary union; sustainability (search for similar items in EconPapers)
JEL-codes: E52 E62 F64 Q54 Q58 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2022-01-14
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4007398 Full text (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ebg:heccah:1450

Access Statistics for this paper

More papers in HEC Research Papers Series from HEC Paris HEC Paris, 78351 Jouy-en-Josas cedex, France. Contact information at EDIRC.
Bibliographic data for series maintained by Antoine Haldemann ().