What has been agreed on banking union risks reigniting, rather than resolving the crisis

In December 2013 EU finance ministers negotiated an agreement aimed at establishing a banking union, with further talks between the European Parliament and the Member States ending in an agreement in March 2014.

Iain Begg provides a detailed overview of the main objectives of banking union and what has been agreed so far. He argues that while European leaders have probably gone as far as they can over reaching a compromise, the measures agreed are still insufficient and could potentially exacerbate the risk of another Cyprus-style crisis taking place within the Eurozone.

• Primary Source

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

ESO: Background information: Press Release: Parliament negotiators rescue seriously damaged bank resolution system http://www.europeansources.info/record/press-release-parliament-negotiators-rescue-seriously-damaged-bank-resolution-system/

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