S5 Ep3: Backstage: Next steps towards banking and capital markets union in Europe

In the first episode of the new Backstage series on ‘The Sound of
Economics’, Bruegel senior fellow Nicolas Véron takes time out
from the Bruegel Annual Meetings to discuss the immediate future
of European banking and capital markets union with Jörg Kukies,
state secretary at the German ministry of finance.


The euro-area reform agenda hopes to prevent the repetition of
problems that arose during the crisis at the beginning of this
decade – to provide better protection for taxpayers and
depositors and to avoid any perception of privilege for the banks
of one country over those of another. Although there appears to
be consensus on the necessity of completing banking union, the
question remains open as to which elements are still
missing. 


On the matter of capital markets union (CMU), though the current
European Commission has given great emphasis to progressing with
the project, we are still quite far from consensus on the exact
shape that a more integrated supervisory framework should take.


This discussion gets into the details of the immediate challenges
and the particular sticking points in negotiations over banking
and capital markets union.


For further reading, consider the Policy Contribution on making a
reality of Europe’s capital markets union, co-written by Nicolas
Véron, André Sapir and Guntram Wolff. Meanwhile, in a previous
edition of the Director’s Cut podcast, Nicolas Véron discusses
the importance of developing deposit insurance as a part of
Europe’s broader banking union aspirations.