Banking Union: Where does it stand? What next?
(EN)
Kolliopoulos, Athanasios
In response to the fi nancial crisis, the Eurozone pursued a number of initiatives to create a safer fi nancial sector for the single market. However, the divergent preferences between core and periphery countries and the negative legacy of the crisis have watered down ambitious reform plans for substantial risk-sharing arrangements. In this context, the Eurozone cannot strike a balance between solidarity and crisis prevention. Compared to mid-2012, the “window of opportunity” for strengthening the banking union seems closed for the moment. Paradoxically, doing reforms in fair weather is much more diffi cult, while the immediate reason for the sudden move to Banking Union was the intensifying euro sovereign crisis. As a consequence, the implemented reforms have limited scope and they leave room to fi nancial markets for a disciplining role over states.
(EN)
