No. 106 - 'BANKING UNION The supranational solution to the crisis in the euro area'

Institute for Western Affairs' Bulletin (No. 106/2012) Prof. Janusz Ruszkowski, 'BANKING UNION The supranational solution to the crisis in the euro area'

The multidimensionality of the planned reforms in the EU financial system, especially in the euro area, is supposed to be based on merging the Banking Union with the Fiscal Pact (which is supposed to be the basis for the future Fiscal Union). Apart from that, such a Banking and Fiscal Union would create a new European regulatory regime and a uniform mechanism for banking settlements, mainly for the euro area. It would also be a transition to the next and, more importantly, new phase of integration, which would have the parameters of banking and fiscal federalism in the euro area.