EU law-making in crises: Financial regulation and supervision
(2023) EU Rule-Making in Crises — Location: Salzburg (2.February.2023)
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- Authors
Bauerschmidt, Jonathan 
- Abstract
- The EU responded to the Great Financial Crisis in several ways. First, the EU established a European System of Financial Supervision (ESFS), which comprises the European Systemic Risk Board and three sectoral European Supervisory Authorities (ESAs). Second, the EU created Banking Union with a view to breaking the vicious circle of dependence between banks and sovereigns. In Banking Union, the competence for banking supervision and resolution were partly transferred at the supranational level. Third, the EU proposed the creation of Capital Markets Union to unlock new sources of funding, be less reliant on banks, reduce financial market fragmentation and increase cross-border capital flows. Finally, the EU replaced many soft laws with hard laws in the form of legally binding EU legislation and made greater use of regulations, rather than directives. At the same time, the ESAs and the ECB issued a considerable amount of soft law. Thus, after the crisis, there was the proliferation of ‘harder’ soft law and ‘softer’ hard law in the EU. While undertaking these post-crisis reforms, the EU had to deal with two main challenges: to reconcile the competing interests and different priorities of Member States; and to combine the de-politicisation of certain financial issues with a sufficient level of accountability.
- Affiliations
Citations
Bauerschmidt, J. (2023). EU law-making in crises: Financial regulation and supervision. EU Rule-Making in Crises, Salzburg. https://hdl.handle.net/2078.5/244887