Véron, Nicolas, (2016), “Breaking the vicious circle”, Bruegel, 21 Οκτωβρίου
The eurozone’s banking union has moved from vision to reality in a short period of time, with the European Central Bank now an established supervisory authority for the area’s large banks. This has already made a big difference to the many national banking champions that local supervisors had been treating with kid gloves. But the banking union’s ultimate policy goal, memorably defined by heads of state and government in June 2012 as the “imperative to break the vicious circle between banks and sovereigns,” has not yet been achieved.
One essential link in this vicious circle is the vast inventories of domestic sovereign debt held by many European banks. Reducing these holdings is now central to discussions on a more complete banking union.
Σχετικές Αναρτήσεις
- Schäfer, David, (2016), “A Banking Union of Ideas? The Impact of Ordoliberalism and the Vicious Circle on the EU Banking Union”, Journal of Common Market Studies, 5 Ιανουαρίου
- Borri, Nicola, Reichlin, Pietro, (2016), “Completing the Eurozone banking union: What must be done”, Voxeu, 4 Μαΐου