Gros, Daniel, (2016), “A more perfect, but also smaller union?”, Ceps, 11 January
The Great Financial Crisis showed that Europe’s monetary union was very imperfect. It took the ‘near-death’ experience of the euro crisis of 2010-12 to force Europe’s leaders to act. The response was then to create a large fund to help states in difficulty (the €700 billion European Stability Mechanism, or ESM) and the (imperfect) banking union, with its common supervision by the ECB and a nascent common fund (of up to €55 billion, the Single Resolution Fund or SRF) to restructure failing banks – but no common system for deposit insurance.
Relevant Posts
- Jaumotte, Florence, Osorio Buitron, Carolina, (2015), “Union power and inequality”, VoxEU, 22 October
- Carlo Padoan, Pier, (2015), “Making Progress In Economic And Monetary Union”, Social Europe Journal, 9 October