The European Financial Union? Mind its Gaps!
The European University Institute (EUI), the BAFFI CAREFIN at Bocconi University and the Brevan Howard Centre at Imperial College are jointly organising a conference entitled “The European Financial Union? Mind its Gaps!” hosted at the EUI in Florence on Thursday, the 23rd of April 2020.
Background and objective
The misalignments of powers in European Financial Union constitute a challenging issue for both European and national policy-makers. In spite of the creation of the Banking Union and the progress made on the Capital Markets Union, many powers still rest at the national level, at times undermining and even inhibiting potential actions necessary at the EU level. In a state of necessity and deep interconnectedness amongst national economies of Member States, this paralysis turns sometimes problematic, as it was observed during the last economic and financial crisis. Some actions may take place, ex post, with inventiveness and creativity within the current frameworks or through their slight adaptation. Yet the fundamental dilemma (typically faced by multilevel polities) remains unanswered: which level should be in charge of what and why?
This year’s conference will focus its attention on three cases in which this unsettled vertical competence distribution has shown its limitations::
- The last years have witnessed some timid regulatory evolutions as the fight against money laundering and the financing of terrorism has shown, after a number of scandals and wrongdoings had affected Europe-based banking groups, including from outside the EU.
- On the other hand, the actual implementation of emergency liquidity assistance during the last crisis has not fundamentally changed its framework in the euro area, besides a more coordinated approach in practice.
- Regulation of securities markets is a national competency. However, it is not done uniformly, and regulations designed to combat, for example, market manipulation and insider trading often not effectively enforced. As a result, outside of the UK and a few other places capital markets in the EU have not developed. In the context of the Capital Markets Union project of the European Commission and more broadly the Financial Union, are those responses enough to tackle the current challenges and fill the gaps?
- Franklin Allen, Brevan Howard Centre Imperial College
- Elena Carletti, BAFFI CAREFIN Bocconi University and European University Institute
- Mitu Gulati, Duke University
In cooperation with: