The Eurozone Debt Crisis and the European Banking Union: A Cautionary Tale of Failure and Reform

49 Pages Posted: 31 Oct 2013 Last revised: 19 Dec 2013

See all articles by Emilios Avgouleas

Emilios Avgouleas

University of Edinburgh - School of Law

Douglas W. Arner

The University of Hong Kong - Faculty of Law

Date Written: October 1, 2013

Abstract

The 2008 global financial crisis spread to most of the developed economies, including those of the European Union. Unfortunately, despite decades of effort to build a Single Financial Market, almost all EU jurisdictions lacked proper crisis resolution mechanisms, especially with respect to the cross-border dimensions of a global crisis. This led to a threat of widespread bank failures in EU countries and near collapse of their financial systems. Today, in the context of the Eurozone financial crisis, the EU is at a critical crossroads. It has to decide whether the road to recovery runs through closer integration of financial policies and of bank supervision and resolution, or whether to take the path of fragmentation with a gradual return to controlled forms of protectionism in the pursuit of narrow national interest, although the latter is bound to endanger the single market. Therefore, the policy dilemmas facing the EU and contemporary institution building within the Eurozone provide a key window into the future of both global and regional financial integration.

Keywords: financial crisis; EU; Eurozone; banking union; regional integration

Suggested Citation

Avgouleas, Emilios and Arner, Douglas W., The Eurozone Debt Crisis and the European Banking Union: A Cautionary Tale of Failure and Reform (October 1, 2013). University of Hong Kong Faculty of Law Research Paper No. 2013/037. Available at SSRN: https://ssrn.com/abstract=2347937 or http://dx.doi.org/10.2139/ssrn.2347937

Emilios Avgouleas

University of Edinburgh - School of Law ( email )

Old College
South Bridge
Edinburgh, EH8 9YL
United Kingdom

Douglas W. Arner (Contact Author)

The University of Hong Kong - Faculty of Law ( email )

Pokfulam Road
Hong Kong, Hong Kong
China

HOME PAGE: http://hub.hku.hk/rp/rp01237

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