The European Union undertook major reforms of its economic and financial governance framework after the international financial crisis and the sovereign debt crisis (for an overview, see Journal of Common Market Studies 2009; Review of International Political Economy 2015; and Journal of European Public Policy 2015). Three financial policy areas stand out: financial regulation, which was significantly revised in the wake of the international financial crisis; Banking Union (BU), which was the EU (to be precise, the euro area)’s response to the sovereign debt crisis; and Capital Markets Union (CMU), which was the EU’s attempt to re- vamp financial activities and the real economy after two consecutive crises. These reforms were complex and intertwined. They built on the existing EU framework, notably the Single Financial Market in the case of financial regulation and CMU. The reforms enacted also substantially modified the existing framework, as in the case of BU, which was designed to complete Economic and Monetary Union (EMU).
This paper examines the dynamics of EU reforms in these policy areas by focusing on the preferences and influence of the United Kingdom (UK). The UK has often been considered as an ‘awkward partner’ in the EU. Stephen George’s classic book, An Awkward Partner: Britain in the European Community (1990), points out the troubled relationship of the UK with the process of European integration since its inception. This paper argues that this view is somewhat unwarranted, especially in the case of financial policies. In these policies the UK has been a foot-dragger, a fence-sitter and a pace-setter, depending on the circumstances. The paper does not discuss in-depth the (often complex) intra-EU negotiations in these policy areas. At the same time, the domestic politics and political economy of these issues in the UK are not investigated in details. The aim of the paper is to explore how the EU policy-process and the domestic arena in the UK interacted and with what outcome. The material is organised as follows. Section 2 discusses some concepts that can be useful in order to examine the preferences and the influence of the member states in the EU policy-process. The empirical sections follow by and large a chronological order, discussing EU financial regulation first (Section 3), then BU (Section 4) and finally CMU (Section 5).
FEPS President at Euronews talk-show ‘Brussels, my love?’
by Euronews 15/01/2024
Panellists discussed topics including EU fiscal rules reform, German farmer's protests, and the decision of Charles Michel to quit his job early to run for MEP.
“Trade doesn’t work in isolation from good domestic policies” Interview to Arancha González
by Borderlex 19/09/2023
Interview to Arancha González, former Spanish foreign minister, who released together with FEPS the new book entitled 'The Trade Handbook: Making Trade Work for Prosperity, People and Planet'
A szociális unió imperatívusza
by Új Egyenlőség 09/09/2023
'The imperative of Social Union'. Article about FEPS book 'Europe’s Social Integration: Welfare Models and Economic Transformations' by László Andor.
Após 66 anos de adiamentos, a barragem do Pisão entrou em contra-relógio
by Pùblico 19/08/2023
'After 66 years of postponements, the Pisão dam has entered a race against time' Pùblico's article mentions FEPS Policy Study 'Governing the RRF'
Other cookies are used for Advertisement and Analytics (Sharing on social networks, video playing, analysis and statistics, personalized advertising ...) You can refuse them if you want to. REJECTACCEPTCookie settings