Publication

This brief explores whether a European banking union will deliver what policymakers have promised. It summarizes the specific objectives of the banking union project, examines the elements of a banking union enshrined in current proposals, and analyzes whether this compromise will achieve the medium- and long-term objectives of preventing future crises and protecting taxpayers’ money. The author argues that despite being a big step forward, the banking union as it stands, will not be able to deal with a systemic banking crisis. He therefore concludes with some recommendations to consolidate the progress made so far.