European Banking Union and Constitution: Beacon for Advanced Integration or Death-Knell for Democracy?

The book "The Political and Constitutional Dimensions of the European Banking Union" explores the legal, economic, and political aspects of banking union, examining its constitutional foundations, implications for European integration and democracy, and whether it can be a trade-off between integration and democracy.

\n Format: Hardback
\n Length: 336 pages
\n Publication date: 24 January 2019
\n Publisher: Bloomsbury Publishing PLC
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European decision-makers sought to establish an "ever closer union" with the creation of a European Banking Union (BU) in 2012, amidst the sovereign debt crisis. While the idea generated significant controversy, there has been a lack of comprehensive analysis regarding the political and constitutional aspects of the European Banking Union. This significant new publication aims to bridge this gap. Drawing upon the expertise of esteemed experts in the field, the book delves into the realm of banking union, exploring its legal, economic, and political dimensions. It adopts a four-part approach. Firstly, it establishes the context by examining the constitutional underpinnings of banking union. Subsequently, in parts 2 and 3, it examines the implications of banking union for European integration and democracy. Finally, it raises the question of whether banking union can be more effectively perceived as a trade-off between integration and democracy. This is a valuable, timely, and authoritative compilation.

The European Banking Union (BU) emerged as a response to the sovereign debt crisis in 2012, with the aim of enhancing financial stability and cooperation within the European Union (EU). The BU was designed to address the weaknesses and vulnerabilities of the EU's financial system, which were exposed during the crisis. One of the key objectives of the BU was to establish a single market for banking services in the EU, which would allow banks to operate across borders and provide a wider range of financial products and services to consumers.

The legal framework for the BU was established through the Treaty on the Functioning of the EU, which was signed in 2014. The treaty established a European Central Bank (ECB) as the central bank of the EU and gave it the authority to oversee the financial system of the EU. The ECB was also given the responsibility for developing and implementing monetary policy, which would aim to promote economic growth and stability in the EU.

The economic implications of the BU were significant. By creating a single market for banking services, the BU aimed to increase competition and efficiency in the EU's financial sector. This would lead to lower prices for financial products and services, which would benefit consumers and businesses. The BU also aimed to promote financial stability by ensuring that banks in the EU were well-capitalized and had sufficient liquidity to withstand economic shocks.

The political dimensions of the BU were also significant. The creation of a single market for banking services in the EU required the coordination and cooperation of national governments and the EU institutions. This led to tensions and disagreements between different member states, particularly those with strong financial sectors and those with weaker financial sectors. The BU also raised questions about the role of national governments in the financial system and the extent to which they should be regulated by the EU.

Despite the significant benefits of the BU, there have been concerns and criticisms about its implementation. One of the main concerns is that the BU has not been effective in addressing the root causes of the sovereign debt crisis, such as high levels of debt and economic inequality. Another concern is that the BU has not been sufficiently integrated with other EU policies, such as economic and social policies, which could lead to unintended consequences and exacerbate social and economic inequalities.

In conclusion, the European Banking Union (BU) has been a significant initiative aimed at enhancing financial stability and cooperation within the EU. While the BU has brought about many benefits, there are still concerns and criticisms about its implementation. It is important that these concerns are addressed and that the BU continues to evolve and adapt to meet the changing needs of the EU's financial system.

\n Weight: 642g\n
Dimension: 165 x 240 x 22 (mm)\n
ISBN-13: 9781509907540\n \n