EU Day 2017

Learn about EU Day and the keynote delivered by David O'Sullivan, Ambassador of the EU to the U.S. on the 15th Annual EU Day on March 15.

Master of Arts in European Union Studies

The European Union Center at the University of Illinois offers the only Master of Arts in European Union Studies (MAEUS) program in the Western Hemisphere. Learn more here.

Language Shapes Opinion Towards Gender Equality

Dr. Margit Tavits discussed langauge and gender as a part of the EUC Faculty Lecture Series.

Conversations on Europe

Watch the collection of online roundtable discussions on different EU issues sponsored by the University of Pittsburgh.

Transatlantic Relationships after US Elections

Watch the EUC Sponsored Roundtable on Transatlantic Relations after the 2016 US Election with Moderator Niala Boodhoo

Videos of Previous Lectures

Missed an EUC-hosted lecture? Our blog's video tag has archived previous EUC-sponsored lectures.

Tuesday, August 23, 2011

Quad Day: EU Comes to Illinois Cornfields

Last Sunday, the European Union Center set up a booth on the Quad for the 2011 University of Illinois “Quad Day”. From 11–4 pm, Outreach Coordinator Sebnem Ozkan and Graduate Assistant and MAEUS student Adam Heinz talked with Illinois students about the various programs, events and opportunities sponsored by the EUC.

It was an interesting day, to say the least. For five hours, soaked in the energy of thousands of incoming students looking to shape their futures through campus involvement, our Quad transformed from a quiet park into a buzzing Times Square. Young men and women from every language and culture celebrated the beginning of the “New Year” by investigating the hundreds of departments, sports teams and Registered Student Organizations (“RSOs”) that the University has to offer.

Despite some…strange encounters (including a well-dressed student who simply shouted, “explain yourself!” point-blank and a boo-ing Brit who prophesied the imminent downfall of the EU), the event was a huge success – and a lot of fun. Sebnem and Adam had the chance to speak with over 70 students about the EUC’s Fall 2011 events, MAEUS degree, and new Graduate minor and Undergraduate minor concentrations. Exchange students from France, Spain and Bulgaria were among those who stopped by our booth, most looking rather surprised that such a department existed in the middle of these sprawling Illinois cornfields. We were happy to welcome them to campus!

Adam Heinz


Thursday, August 18, 2011

The Greek Economic Crisis and the European Union

Kostas Kourtikakis is a University of Illinois professor of political science and a native of Greece. On August 11 he was interviewed on Focus 580, a live radio interview program broadcast by Champaign-Urbana's NPR staiton, WILL-AM 580.

Hear his one-hour interview on WILL-AM 58 by clicking here.

You can also listen to Kourtikakis as he compares Greece's situation with that of the U.S. by viewing the one-minute bonus video below:

Also see: A Minute With Kostas Kourtikakis to find more of Kourtikakis' take on these issues.


Wednesday, August 17, 2011

A Minute With Economic Policy Expert Anne Villamil

Anne Villamil, an EUC-affiliated faculty member, discusses the condition of the U.S. economy, contrasting it with the European Union's "more significant" financial crisis. She notes the EU's austerity measures and warns of Europe's volatility in the coming months. The full interview is posted below, or you can read it here:

Anne Villamil is a University of Illinois professor of economics and of finance who studies the effects of institutions and policies on financial markets and development. In an interview with News Bureau Business and Law editor Phil Ciciora, she discusses the state of the U. S. economy.

Politicians and pundits have been harping about U.S. solvency, even though interest rates are near zero and U.S. Treasuries actually rallied after the S&P credit downgrade. Are these worries legitimate, or are they a distraction from the real issue of lackluster job creation?

The U.S. is not on the verge of default. It has a longstanding record of honoring its debt, dating back to clear statements on the perils of default by Alexander Hamilton when the country was founded. An explicit default by the U.S. will not occur.

However, there are two legitimate concerns.

First, the U.S. is on an unsustainable budget path. It has cyclical and structural budget deficits. The cyclical budget deficit is due to the severe recession and will improve over time. During a recession people lose jobs causing tax revenues to drop, and spending on unemployment and other programs rise. This creates a cyclical deficit. Cutting spending and raising taxes during a recession would further depress the economy, so governments issue bonds to cover the gap and pay off the bonds when the economy improves.

A structural budget deficit indicates a fundamental imbalance between spending and taxes even if the economy were at full employment. Eliminating a structural deficit requires structural reform – cutting spending (or rates of growth of spending) and increasing tax revenue, through higher GDP growth, raising rates or broadening the tax base. Structural deficits can be solved by a number of policy options, but timing is an important consideration.

Second, some people are concerned about inflation – would the U.S. induce inflation to decrease the value of its debt, which would constitute an implicit and partial default? Inflation is not a problem currently in the U.S., but many countries have devalued their debt through inflation in the past.

High inflation is not a successful policy and the U.S. will not pursue it. The Fed’s recent quantitative easing, which was designed to prevent deflation and provide liquidity, has raised concern about inflation. I expect the Fed to be very attentive to unwinding its quantitative-easing policy.

The fact that U.S. Treasuries rallied after the credit downgrade indicates that markets continue to believe that U.S. debt is safe. However, the lack of job creation is clearly a problem. Job losses were significant in this recession, and the drop in housing and asset prices were shocks to wealth and confidence. Cross country data show that when recessions are accompanied by a financial crisis, the recession is more severe and recovery is slow – the unemployment rate tends to be about 7 percentage points higher and take 4.8 years to return to the pre-recession level; real GDP falls about 9 percent over 1.9 years; real stock prices fall about 55 percent from the peak; housing prices fall about 35 percent from the peak; and government debt increases by about 86 percent.

A common refrain heard during the debt-ceiling crisis has been comparing the federal budget to a family budget, and how the government must now tighten its belt, just like families. Is that an appropriate comparison?

There is nothing more powerful than the simple arithmetic of a budget constraint. The basic idea that expenditures must equal revenues is correct, but there are two important differences between families and governments.

First, governments have more tools at their disposal. A government can issue bonds that are backed by a country's “full faith and credit.” Ultimately, this means that sovereign debt is secured by a country’s ability to tax now and in the future, in order to honor its debt. Second, governments can be patient, have deep pockets and provide public goods. Well-functioning governments can borrow greater amounts, for longer periods, at lower rates than can a family. In addition, governments provide or contribute to public goods such as defense, education and infrastructure. While there is ample scope for policy reform, sometimes cuts at one level turn out to be transfers of liabilities to states, institutions or individuals. Contractionary policy is problematic in a weak economy, if the funds were being used effectively.

Are we entering a new age of austerity? In Europe, austerity measures have only exacerbated economic woes. Is austerity the correct fix for the U.S. economy?

The U.S. had a severe recession and a global financial crisis. While the U.S. has a structural budget deficit that needs to be addressed, we are in the midst of a slow recovery with concerns of a “double dip” recession. This means that the U.S. needs a credible multi-year plan to bring the budget back into balance over time. This is the real challenge. Severe austerity measures right now – large spending cuts and large tax increases – would be contractionary and could tip the economy into another recession.

Many combinations of spending and tax changes can achieve that goal, but policy deadlock undermines confidence in the U.S. and abroad. Changing rates of growth over time are powerful tools that have been used successfully before in the U.S. I do not see this as a new age of austerity, but it is time to make some choices.

Europe’s problems are more significant and could affect the global economy. Taxes and spending are generally higher than in the U.S., and some countries are likely to default. Also, unlike the U.S., Europe does not have an integrated monetary and fiscal policy. Europe is still building its monetary and fiscal union. I expect a lot of volatility in the next few months. Some countries in Europe are already in recession and some are slowing. This crisis would involve the European banking system, and we saw in the recent financial crisis that financial problems can spread quickly and are expensive to clean up.

What can the Fed do? Should it revive its quantitative easing policy, allow inflation to rise above 3 percent, or something else?

The Fed cannot engineer economic growth. The U.S. needs a sustainable and credible fiscal plan, and this is not the Fed’s job. I do not expect to see more quantitative easing unless there is another crisis. If a crisis occurs, the Fed would provide liquidity to stabilize the financial system. We could see inflation a bit above 2 percent, but it will not be high. Ultimately, we need to make choices about the levels of spending we are willing to pay for. There are many possible plans, but we need a plan with consistent spending and tax choices over time.

Cookie Settings