Banking Union- an European Project with Certain Success Prospects

Banking union project rising from the sovereign debt crisis of the Eurozone is meant to achieve two goals simultaneously: completion of the single market in financial services, namely the free movement of capital and strengthening of economic and monetary union, especially of the single currency role, aiming at further economic integration and for paving the way to its last stage: full economic union and federal political union. This project that has to be doubled by the fiscal union is more advanced on banking supervision component, where the European Central Bank (ECB) and the European Banking Authority (EBA), involved also in bank assessments and stress tests, play a key role and less advanced on components of bank resolution and common deposit guarantee, the last two involving the creation of common European funds and institutional structures for their proper management. The project will likely to be completed in few years and represents a significant contribution to the reform of EU economic governance which started in 2010, and it was initiated by the European Commission experts together with other experts (see Larosière and Liikanen reports), and it has already resulted in the coordination and the political will displayed by the European Council to carry out the objectives, in the actions undertaken by the legislators (ECOFIN and European Parliament) by adopting regulations and analyzing the proposed directives and in the intense activity carried out by the European Commission, ECB and EBA. The urgency of completing banking union established by the European Council and the commitments made by other European institutions can contribute to a substantial progress until the new European elections (May 2014). Later on it may be taken into account a treaty change, specifically requested by United Kindgom, to clarify certain political and organizational aspects, including also those of fiscal union and political union.