Eurozone choice: Banking union or financial repression?

A group of eurozone Nannycrats has agreed to meet later this month to devise a master plan for a eurozone fiscal and banking union. Here is a synopsis from my post on Sunday Details of the Secret "Nannyplan" Emerge; Proposed Nannygroup Uniforms Nannyplan Details

Via Mint Partners' Bill Blain, Today’s big event was Italy's 10% auction. Buyers can’t ignore yield, and I suspect many were “encouraged” to participate. But a decent Italy auction doesn't change the brutal facts. Electoral fall-out blankets the Euro battlefield, but it was decisions made years ago that have brought us to this blasted heath. Markets are caught in... Stalemate.

BRUSSELS – The European Union reached a landmark deal on Thursday to make the European Central Bank the bloc’s top banking supervisor, giving EU leaders greater confidence that they are gaining the upper hand over the eurozone’s debt crisis. EU finance ministers forged a deal on the single supervisor in the early hours of Thursday after marathon talks. Leaders will give their stamp of approval at a summit starting later in the day, their last of 2012, and also discuss closer fiscal ties for their troubled currency area.

Dirk Schoenmaker, 9 December 2012Eurozone banking union discussions are full of questions about the scope of Eurozone microprudential bank supervision. Yet, this column argues that there is surprisingly little debate on the macroprudential supervision that is necessary to safeguard the wider European financial system. After all it is macro developments, such as fast rising housing prices, that lie at the heart of the ongoing crisis in Europe.

Daniel Gros, 27 November 2012An integrated banking system saved Nevada after a local real estate boom turned to bust. Without an integrated banking system, the same wasn’t true of Ireland. This column argues that comparing Ireland and Nevada shows that banking union is far more important for Europe than current proposals of fiscal union.

Viral Acharya, 16 October 2012With most of the debate around banking union in the Eurozone focusing primarily on the financial institutions it will regulate, this column argues that the issue of sovereign debt of the members of the Eurozone needs also to be taken into account.Full Article: Banking union in Europe and other reforms

Jacopo Carmassi, Carmine Di Noia, Stefano Micossi, 13 June 2012Is Europe ready for a banking union? This column argues that the current debate is missing several key points. Chief among these is that much of what is needed for Europe’s financial system is already feasible within the existing set up. Full Article: Banking union in the Eurozone and the EU

Nicolas Véron, 23 May 2012Many policymakers and academics are now agreed that a banking union, together with some form of fiscal union, is needed if the Eurozone is to emerge from the crisis in one piece. This column argues that while the current proposals for a banking union still need to be fine tuned, the crisis calls for swift and bold action.Full Article: Is Europe ready for banking union?