Wolfgang Schäuble, the German finance minister, raised
additional concerns in April 2013 about a proposal to create a single banking
supervisor for the European Union. About 150 large banks would be under the
direct supervision of the European Central Bank, which would also have the
power to intervene to oversee smaller lenders. This proposal had been set as a
precondition for states to draw on the E.U.’s bailout fund, the European
Stability Mechanism, to recapitalize struggling lenders directly. To analyze Schäuble’s
potential stumbling blocks, it is necessary to understand the conflicts of
interest that are involved.
The full essay is at "Essays on the E.U. Political Economy." Available at Amazon.
