The Political Redefinition of Europe

Opening remarks at the Swedish Financial Markets Committee’s (FMK) Conference on “The European Parliament and the Financial Markets,” Stockholm, June 8, 2012 For the past few years, headlines in Europe have been dominated by the financial and economic developments of the crisis, first in the banking system and then in sovereign debt markets. Throughout this period […]

Is Europe Ready for Banking Union?

Systemic fragility in the European banking sector predates the Greek fiscal crisis. It was revealed by the subprime/Lehman shock of 2007–08, and has never been properly addressed since then in spite of successive stress tests. In recent weeks, several senior policymakers have become more explicit on the need for a banking union—in other words, a […]

A New Era for Global Financial Standards

Even as headlines remain dominated by the euro area crisis, the financial world is transforming itself along multiple other dimensions. One intriguing but so far little-noticed development is the gradual shift in the role of global financial standard setters, which are becoming more assertive in looking at how their standards are adopted and implemented around […]

European Bank Stress Tests: Third Time Lucky?

While politicians have hailed the bailouts of Greece and Ireland as necessary and responsible, there are many who feel that burdening taxpayers is grossly unfair. This column argues that Europe’s governments should lead a process of ruthless triage, recapitalisation, and restructuring of the region’s most important banks. It adds that while this will be extremely disruptive, the alternative may threaten the political fabric of the EU.