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European Banking Union

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Abstract

The sovereign crisis that has characterised the eurozone since 2010 has highlighted the potentially vicious circle between banks and sovereigns, adding an extra dimension to the 2007/08 financial crisis. This is why the EU heads of state and government committed to a European banking union in June 2012; a vision that was further developed in the European Commission’s blueprint. The aim of the banking union is to ensure that the financial institutions of the – for now – 19 member states will be subject to a single supervision, a single resolution and a common deposit insurance system. This article explains the background to these initiatives and weighs the progress towards their completion.

This chapter was originally published in The New Palgrave Dictionary of Economics, Online edition, 2016. Edited by Palgrave Macmillan

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Acknowledgements

The author wishes to thank, without implicating, Iain Begg for his constructive comments on this entry.

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Correspondence to Corrado Macchiarelli .

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Macchiarelli, C. (2016). European Banking Union. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95121-5_3043-1

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  • DOI: https://doi.org/10.1057/978-1-349-95121-5_3043-1

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  • Online ISBN: 978-1-349-95121-5

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