Since its introduction in May by European Commission President José Manuel Barroso, the concept of an EU-wide banking union remains a hotly debated topic. This latest step toward European integration would centralize oversight of the EU financial system and herald much-needed structural reforms as the eurozone struggles with economic crisis. Yet despite its approval by eurozone leaders at last month’s much-touted Brussels summit, key questions regarding its concept and implementation remain unanswered.
European leaders envision a future banking union built upon three pillars: an integrated supervisory system for cross-border banks at the EU level centered on the European Central Bank, a single-deposit guarantee scheme and an EU resolution fund. However, the detailed construction of these concepts has yet to be negotiated.
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(Photo: European Commission)