Banking Union: An Effective Instrument for the Eurozone Banking Sector or a Useful Distraction from Other Issues?
Banking Union: An Effective Instrument for the Eurozone Banking Sector or a Useful Distraction from Other Issues?

Summary/Abstract: The ongoing review performed by European institutions with closer and closer cooperation with Member States since the beginning of the crisis has revealed that nowadays, with globalisation and the greater presence of trans-border banks, such a situation can jeopardise not only the process of economic integration and the completion of the single market for financial services but also, according to the directive, “continuation of the critical functions of institutions and the preservation of financial stability.” It can also threaten confidence in the European financial markets and financial players, which in turn could bring unintended consequences for economic growth. From political and economic points of view, such a situation could no longer be accepted. Therefore, politicians and economists, having been accused of doing nothing by European taxpayers bearing the huge costs of numerous rescue packages granted to failing banks, had to find a solution.

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