Acceso usuarios
Banking union is the most fundamental change in the institutional design of the European Union since the advent of monetary union. The centralisation of responsibilities for the supervision and resolution of significant credit institutions is a ‘game changer’ in the history of European integration. This contribution considers several gaps in the governance of banking union with emphasis on the ‘missing pillar’: lender of last resort. It argues that the European Central Bank should be the ultimate provider of liquidity in the Euro area, both in cases of market liquidity (where it already has competence) and in cases of individual emergency liquidity assistance (where the competence is national, albeit seriously constrained by a normative framework) at least for significant credit institutions. The future of Europe depends on its ability to build a green, digital, and inclusive economy that fosters intergenerational equity. This requires the completion of both banking union and capital markets union.
