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Wednesday, 25 June 2014

Banking Union: Will the ECB’s assessment do the trick?

Jack Seddon (St John's College, Oxford)

It is often noted that Europe's banking union is incomplete, involving a single supervisor but without an adequate single resolution mechanism or central deposit insurance arrangement. However, what, exactly, that “half union” is and how, precisely, the union is taking shape is usually described only in the vaguest terms. This was not the case in Nicolas Veron's (Senior Fellow at Bruegel; Visiting Fellow at the Peterson Institute, Washington DC) exploration of the question Max Watson invited him to PEFM to explore: namely, "Banking Union: Will the ECB's Assessment do the trick?" It is difficult in this short blog to give expression to the mastery with which Veron talked through the complex details of the banking union, its strengths and weaknesses, its present scope and the likely developments downstream. However, it would be an abdication of responsibility not to attempt to give some sense of the fundamental and fascinating trends Veron observed.