- Financial leaders met to discuss financial-services regulations in Europe.
Financial leaders, policymakers, academics, and consultants discuss financial-services regulations in Europe.
Executives from leading financial institutions and think tanks joined policy makers, academics, and management consultants at the Brussels campus of Vlerick Business School for three spirited panel discussions on financial-services regulations in the European Union. Held under Chatham House Rule, this paper does not offer specific attribution on points raised, but draws selectively on the many valuable contributions.
The gist of the debate is that scale and regulatory costs have increased dramatically in the European Union, and that while governments want to tighten control over the financial sector in general, financial institutions as a whole and banks in particular warn that more regulation threatens to become counterproductive, eroding their ability to lend and thus undermining the prospects of new investment and growth.
Everyone seems to agree that strict regulations are both required and desirable, but they must be appropriate, adaptive, sufficient, and transparent. There is widespread doubt that current regulations embrace these qualities. Indeed, regulations really aren't all that appropriate, given the excess focus on retail banking and less on other financial industry segments, such as shadow banking. They may be adaptive, but in the wrong way, as pre-crisis regulations slowly enabled global integration, but post-crisis national tightening has led to fragmented, inward-looking and contradictory policy. Sufficiency is difficult to define, but the current approach may lead to overkill. Lastly, transparency—less since the involvement of various regulators in a single financial institution—leads to contradictory effects. Overall, the equilibrium between free market and regulation remains elusive—and the continuing crisis may affect it even more.Close
A huge GDP gap haunts European governments as they seek to balance between government spending levels GDP trends.
Europe’s public sector has a problem. Government spending in the 27 member countries of the European Union (EU27) was almost 50 percent of gross domestic product in 2011. The result is a GDP gap of €247 billion—in other words, the amount governments overspent.
What’s more, compared with other regions, Europe’s ratio of government spending to GDP is 9 percentage points higher than the nearest contender (the United States) and more than double that of China, primarily because of social security.
The question is whether it will be possible for European countries to survive while preserving social security. To answer this, A.T. Kearney performed preliminary research on government spending in the EU27.
The research finds that governments can take steps forward by closing the GDP gap through economic development initiatives, balancing public spending and GDP by reducing operating costs, optimizing procurement, improving employee productivity, implementing lean processes into the public sector, and incorporating shared services.
Some EU27 countries face tremendous challenges dealing with the crisis, but the picture is not all bad. Many issues can be solved by optimizing procurement and improving productivity. Wise leaders will help their governments put the right strategies in place for a sustainable future for Europe.Close
- Aol Government, 26 November 2012
In a debate between improved economies of scale and supplier concentration, will the benefits achieved through M&As meet future defense challenges?
As Russia faces a declining population and a rise in chronic illness, a new pharma-focused healthcare system could be the cure.
As we know by observing other countries, effective healthcare systems are both possible and affordable. For Russia, such a healthcare system presents the government with a golden opportunity to provide a social and economic breakthrough for its people.
Russia isn’t alone in its problems, and the lessons learned from the country’s current dilemma are instructive for countries seeking to reshape healthcare policy as a way to drive and support sustainable economic development. This paper examines a major aspect of the healthcare policy debate taking place in Russia today—national drug insurance (NDI).Close
From the devastation of March 11, 2011, may come a new birth for Fukushima and Japan.
On the Richter scale, the quake is 9.0, the most powerful ever to strike Japan. Even as the aftershocks rumble, none of us imagines the approaching tsunami traveling behind the quake, across the Pacific, toward Japan's eastern coast. When the waves break, the news is immediately horrifying, and only grows more so. More than 20,000 people are dead or missing.
The catastrophe is not over. Three reactors at the Fukushima Daiichi nuclear plant flood and suffer core meltdowns. Radiation levels rise. An estimated 150,000 people move out or are evacuated while municipal officials impose a 20-kilometer exclusion zone around the power station. Around the world Fukushima becomes a household name for the worst possible reasons.Close
- The Hill, 9 April 2012
The defense industry must pursue an affordability path with a vengeance.
Budget pressures are triggering changes in the defense value chain. Commercial-sector success offers a way forward.
The defense value chain is on the precipice of significant change triggered by severe budget pressures. The Department of Defense is at a crossroads. Successes in the commercial sector offer the industry a way forward, but they also beg a key question: Can defense value chains respond similarly?
Budget cuts are increasing pressure in every direction along the U.S. Department of Defense (DoD) value chain—from customers (PEOs, SPOs, war fighters), prime contractors, and sub-tier suppliers, to funding providers such as those on Capitol Hill and Wall Street. The pressure is forcing the government and its suppliers to dramatically challenge the status quo.
A.T. Kearney interviewed 18 defense-sector senior officers and executives from various areas along the defense value chain. They presented a wide range of perspectives on improving affordability—suggesting that defense acquisition (buy side) and development, production, and sustainment (sell side) are ill equipped to meet today's new realities.Close
Every city has different objectives to fulfill, and a wide range of strategic options available to achieve them.
A.T. Kearney's Global Cities Index—which measures the degree of openness, relevance, and global integration of cities around the world—underscores how cities are addressing the wave of globalization that has swept the world. City leaders, however, have many objectives, some far more pressing than globalization. Number one is to be a successful leader of a successful city and, thus, get reelected.
Yet whatever the goals, achieving them requires a vision for the future—one that is inspiring, compelling, and credible. When outlining such a vision, city leaders face two distinct but interconnected goals: to protect and improve their citizens' well-being, and to become attractive to the external resources that are so vital for long-term growth. How to make this two-pronged vision a reality?Close
- The Hill, 11 November 2011
Five principles for cutting the defense budget without harming national security.
- AOL Government, 3 October 2011
Each side of government's supply-and-demand equation is under pressure.
Economic clusters create strong environments for business, academia, and innovation. The next generation will address capital, talent, and the environment.
In emerging and mature markets worldwide, economic clusters have jumpstarted industries and accelerated economic development by creating ripe environments for business, academia, and innovation. Next generation economic clusters are emerging.
Globally, economic clusters (ECs) are abundant in a variety of forms: special economic zones, industrial zones, free zones, economic cities, and technology clusters. Yet, too many ECs have started without a clear strategy to meet their economic development objectives.
In many cases, world-class infrastructure and business and industrial facilities have been built, and tenants have filled the space to different degrees, taking advantage of favorable business conditions and local market demand. However, to become true incubators of economic development, many ECs face an opportunity to clearly define their playing field and truly differentiate themselves.Close
- AOL Government, August 2011
How can the DoD reduce costs and make business management systems more effective?
Europe, Middle East, and Africa