On Friday, Bruegel published a new Policy Brief in which I argue that Europe's governments should contemplate a reform of their financial stability arrangements. Recent cross-border consolidation of Europe's banks and other financial developments make it increasingly doubtful that the current nationally-anchored framework could deal with the failure of a major financial institution with large operations in several EU countries. Introducing an EU tier of supervision focused on those 'pan-European banks' appears to me the only way to restore credible crisis management capability.
I also wrote an op-ed piece for the Financial Times, with summary of the argument. It was published on 7 September and you can read it here.
Download BruegelPolicyBrief_310807.pdf to read the piece - and please let me know your comments on this blog!
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