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Europe towards banking union : an explanation of the decision making process

Kern, L. (2013) Europe towards banking union : an explanation of the decision making process.

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Abstract:A European Banking Union as the solution to the financial crisis was proposed by the Commission and is currently discussed in Brussels. While international actors strongly promote the proposal and a timely implementation, the member states are split in their opinions. France, and with it a number of other states, is strongly favoring the idea, while Germany voiced opposition to points of governance and application scope. Non-Eurozone countries, such as the UK are mostly concerned with their role in the new Union and fear a possible marginalization in Europe. But with split opinions on the matter, agreement seeking becomes difficult and a solution seek far fetched. This research poses the question why Banking Union is likely to be achieved even when member state opinions are split, and will elaborate on the process of decisions making and agreement seeking on Banking Union. The integration theories of neofunctionalism and intergovernmentalism are used to evaluate the process of opinion shaping, and the influence of various actors in the proposal development and decision making. The demand of integration in banking as it is represented by the international actors is judged against the willingness of member states to supply integration. What is found is that national actors tend to lobby their governments strongly and encourage bargains and compromises that support their positions. The outcome of these negotiations then depends largely on the bargaining strength of the respective states; in Banking Union it is the financially stronger and economically well-doing member states that are in the best position. Therefore, Banking Union is likely to be achieved in the coming years, with changes according to German and other strong states’ preferences.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:88 social and public administration
Programme:Public Administration BSc (56627)
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