EU banking system
The European Union (EU) is an economic and political union of 28 member states that are located primarily in Europe.1 The EU operates through a system of supranational independent institutions and intergovernmental negotiated decisions by the member states.2
Institutions of the EU include the European Commission, the Council of the European Union, the European Council, the Court of Justice of the European Union, the European Central Bank, the Court of Auditors, and the European Parliament. The European Parliament is elected every five years by EU citizens. The EU 's de facto capital is Brussels.3
The main purpose of the European Union was the cessation of frequent and bloody wars between neighbors, which culminated in the Second World War.4 At the same time, the objectives of creating the European Union as well were to ensure the economic and social progress of their countries by common action to eliminate the barriers which divide Europe; to strengthen the unity of their economies and to ensure their harmonious development; and to pool their resources to preserve and strengthen peace and liberty.5
Although the aims were lofty, Europe embarked on a practical, step-by-step journey, mainly because European leaders were divided on the ultimate goal — whether their Community should be a family of nations, a confederation of states, or a unified European government.6 The EU traces its origins from the European Coal and Steel Community (ECSC) and the European Economic Community (EEC), formed by the Inner Six countries in 1951 and 1958, respectively.7
Officially, the establishment of the European Union was confirmed by signing the Treaty of Rome, which is an international agreement.8 The Treaty of Rome included references to two instruments that would define Europe’s initial approach to the problem of reducing disparities within the Community. The European Investment Bank would make loans in lagging regions, and the European Social Fund would provide money for
Institutions of the EU include the European Commission, the Council of the European Union, the European Council, the Court of Justice of the European Union, the European Central Bank, the Court of Auditors, and the European Parliament. The European Parliament is elected every five years by EU citizens. The EU 's de facto capital is Brussels.3
The main purpose of the European Union was the cessation of frequent and bloody wars between neighbors, which culminated in the Second World War.4 At the same time, the objectives of creating the European Union as well were to ensure the economic and social progress of their countries by common action to eliminate the barriers which divide Europe; to strengthen the unity of their economies and to ensure their harmonious development; and to pool their resources to preserve and strengthen peace and liberty.5
Although the aims were lofty, Europe embarked on a practical, step-by-step journey, mainly because European leaders were divided on the ultimate goal — whether their Community should be a family of nations, a confederation of states, or a unified European government.6 The EU traces its origins from the European Coal and Steel Community (ECSC) and the European Economic Community (EEC), formed by the Inner Six countries in 1951 and 1958, respectively.7
Officially, the establishment of the European Union was confirmed by signing the Treaty of Rome, which is an international agreement.8 The Treaty of Rome included references to two instruments that would define Europe’s initial approach to the problem of reducing disparities within the Community. The European Investment Bank would make loans in lagging regions, and the European Social Fund would provide money for
Bibliography: 1. Alter, A and Y Schüler (2012), “Credit spread interdependencies of European states and banks during the financial crisis”, Journal of Banking & Finance 36, 3444-3468. 2. De Haas, R and I Van Lelyveld (2013), “Multinational Banks and the Global Financial Crisis. Weathering the Perfect Storm?”, Journal of Money, Credit, and Banking, forthcoming. 3. Goodhart, C and D Schoenmaker (2009), “Fiscal Burden Sharing in Cross-Border Banking Crises”, International Journal of Central Banking 5, 141-165. 4. Schoenmaker, D (2013), Governance of International Banking: The Financial Trilemma, Oxford University Press, New York. 5. Schoenmaker, D and A H Siegmann (2013), “Efficiency Gains of a European Banking Union”, Duisenberg School of Finance–Tinbergen Institute Discussion Paper, TI 13-26/DSF 51. 6. George Irvin (2012), «A Banking Union – Europe’s TARP?», Social Europe Journal 7 24. Robert Peston, Matthew Price “Brussels plans European banking union from 2013”, BBC News Business, 2012/06 25 65. Proposal for a Directive of the European Parliament and of the Council on Deposit Guarantee Schemes [recast], Brussels, 12.7.2010, COM(2010)368 final 66 67. The Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC. This legal route was proposed by Carmassi et al. (2010) 68 69. Allen, F, T Beck, E Carletti, P Lane, D Schoenmaker, and W Wagner (2011), Cross-Border Banking in Europe: Implications for Financial Stability and Macroeconomic Policies, CEPR Report, London. 70. Alcidi, C and D Gros (2012), “The Spanish hangover”, CEPS Policy Brief, No. 267, CEPS, Brussels 71 72. Veron, N (2011), Banking Federalism is Key to Eurozone’s Survival, Emerging Markets – G20 Edition, 3 November 73 74. Basel Committee on Banking Supervision (BCBS) (2010), “Report and Recommendations of the Cross-Border Bank Resolution Group”, BIS, Basel, March. 75. Carmassi, J, E. Luchetti and S. Micossi (2010), Overcoming too-big-to-fail: A Regulatory Framework to Limit Moral Hazard and Free Riding in the Financial Sector, CEPS Paperback, CEPS, Brussels, March. 76. Carmassi J. and S. Micossi (2012), Time to set banking regulation right, CEPS Paperback, CEPS, Brussels, March. 77. Di Noia, C. and S. Micossi (2009), Keep it simple: Policy Responses to the Financial Crisis”, CEPS Paperback, CEPS, Brussels, March. 78. Financial Stability Board (FSB) (2012), “Thematic Review on Deposit Insurance Systems – Peer Review Report”, 8 February. 87. Preambles to the Treaties Establishing the European Communities, in The European Union: Readings on the Theory and Practice of European Integration, ed. Brent F. Nelsen and Alexander C-G. Stubb (Boulder, CO: Lynne Rienner Publishers, 1998) 88 94. Treaty of Nice: A Comprehensive Guide, Europa, 2010 95 96. Adrian Favell and Virginie Guiraudon “European Union Politics”, SAGE, 2009; 10; 550, DOI: 10.1177/1465116509346384 97