Finance

Can the European Banking Union Bridge the Gap between Capitalism and Democracy?

July 21, 2016

The European Banking Union of 2014 may turn out to be a prodigy of the global financial crisis of 2008. Even though it took the European Union many years to come up with specific measures to address this crisis, and even though most of these measures remain contested and criticized, it is a fact that the Banking Union is doing something about one of the root causes of the crisis, namely the so-called “bank–sovereign vicious circle”. Also, the architecture of the Banking Union is impressive.

Of course, it is far too early to tell whether its mandate and its design will actually allow the Banking Union to bring sustainable governance to the European banking sector and hence resolve one of the most nagging problems the EU has been struggling with for the past seven years. But at least for now, the Banking Union holds that promise.

Can the European Banking Union Bridge the Gap between Capitalism and Democracy.pdf (127kb)

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