How to complete Europe’s banking union

The new European banking union arrangements represent a landmark in European integration which will fundamentally change the financial sector in the European Union. It will make a systemic banking crisis less likely and will help bring down financing costs in the euro periphery, contributing to an economic recovery in Europe. However, the current form of the proposed banking agreement is not sufficient to provide a proper framework to deal with new systemic crisis, nor will it level the playing field between banks in different eurozone countries. It therefore falls short of the objectives policy makers had set for a banking union.

• Primary Source

ESO: Key Source: European Banking Union http://www.europeansources.info/record/european-banking-union-2/

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