The European Aspects of Global Financial Developments

The Journal of Business, Entrepreneurship & the Law

Posted: 25 Apr 2018

See all articles by Virág Blazsek

Virág Blazsek

University of Leeds School of Law; United Nations Joint Staff Pension Fund - Office of Investment Management; George Washington University Law School

Date Written: March 15, 2018

Abstract

What is the position of Europe—and specifically the European Union (EU)—on the world map of global finances in 2017? This comment seeks to answer this question by focusing on three key issues. First, it analyzes Europe’s post-2008 bank bailouts, its sector-wide rescue packages, and its consequential sovereign-debt crisis. Second, it considers the role of the international credit rating agencies and asks why Europe does not have a large rating agency of its own. Third, it assesses the EU’s major recent regulatory developments related to the financial sector. There is no doubt that Europe is in a sustained economic and political crisis; the question of interest is whether the EU is responding by adopting reforms that will make it economically stronger and more united. This comment concludes that some of the EU’s post-2008 reforms—such as enhanced consumer protection, stress testing and stricter prudential requirements—have been in line with international regulatory tendencies, but that slow and expensive decision-making, member states’ failure to compromise on fundamental issues, and misguided rules for bank resolution and supervision have harmed the EU’s global competitiveness.

Keywords: financial crisis, bailout, bail-in, bailouts, rating agencies, financial regulation, banking, resolution, European Union, FDIC

Suggested Citation

Blazsek, Virág, The European Aspects of Global Financial Developments (March 15, 2018). The Journal of Business, Entrepreneurship & the Law, Available at SSRN: https://ssrn.com/abstract=3157197

Virág Blazsek (Contact Author)

University of Leeds School of Law ( email )

Leeds LS2 9JT
United Kingdom

United Nations Joint Staff Pension Fund - Office of Investment Management ( email )

885 2nd Ave, 5th Floor
New York, NY 10017
United States
347.334.0741 (Phone)

HOME PAGE: http://https://virag-blazsek.com/

George Washington University Law School ( email )

2000 H Street, N.W.
Washington, DC 20052
United States

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