Does the EU have the necessary safeguards against a new financial crisis?

Tuesday 19 September 2017, 15.00-17.30

 

DIIS ∙ Danish Institute for International Studies

Auditorium

Gl. Kalkbrænderi Vej 51A

2100 Copenhagen

 

 

Background

Do we have the necessary safeguards in place to prevent a new financial crisis? After the global financial crisis in 2007-2008, reforming the financial sector was at the top of the European agenda. Ten years later, however, observers question the extent of regulatory achievements. Did the historic momentum for comprehensive reform translate into new, more effective ways of regulating finance? Or, did the crisis quickly become a distant memory, unable to drive forward the politically challenging agenda of tightening financial regulation in Europe in the midst of an economic recession? 

 

Some argue that the European Banking Union – a cornerstone of the post-crisis regulatory response in Europe – recently suffered a major blow. In June, the European Commission approved the Italian government’s state-sponsored resolution of two Italian banks. Many observers argued that this not only violated European competition law, but also compromised one of the founding principles of the banking union itself – that taxpayer-money should no longer be used to bail out failing banks in Europe. If member states have difficulties adhering even to the principles of what many considers a somewhat half-baked version of a banking union, how well will this new institutional architecture fare in the face of a full-fledged financial crisis?

 

Meanwhile, many argue that while many of the problems haunting Italian banks are especially pronounced in Italy, they are by no means unknown in other parts of Europe. Can the legacy of non-performing loans push banks in other European countries into similar trouble, despite the strengthening of capital and liquidity requirements? If that is the case, and if taxpayers pick up the bill instead of investors (through bail-ins), what will the implications be for public debt sustainability across the Eurozone? Will the European Central Bank (ECB) be called upon again to intervene to ensure that the yields on the government bonds of distressed countries do not spiral out of control? Will the ECB be able to act decisively as lender of last resort, not just for banks but also for governments, if need be? Which kinds of politico-ideological divisions amongst the main Eurozone countries could complicate an effective crisis response?

 

The seminar is organized in collaboration with Aalborg University and Cevea, with co-funding from Europanævnet.

 

Speakers

 

Nicolas Veron, Senior Fellow, Bruegel

Per Callesen, Director, Danish Central Bank

Jeppe Kofod, MEP, Socialdemokratiet

Ulrik Nødgaard, Director, FinansDanmark

Jakob Vestergaard, Senior Researcher, DIIS

 

Programme

 

15.00-15.10

Introduction

 

Jakob Vestergaard

 

 

15.10-15.50

Ten years of EU financial crisis and reform: an early assessment

 

Nicolas Veron

 

 

15.50-16.05

Commentary

 

Jakob Vestergaard

   

16.05-16.20

Coffee break

 

 

16.20-17.00

Panel debate

 

Nicolas Veron

 

Per Callesen

 

Jeppe Kofod

 

Ulrik Nødgaard

 

Jakob Vestergaard

 

Moderator: Kristian Weise

 

 

17.00-17.30

Q&A

 

 

Practical information

 

The seminar will be in English and livestreamed on diis.dk.

 

Participation is free of charge, but registration is required. Please use our online registration form no later than Monday 18 September 2017 at 12.00 noon. Livestream does not require registration.

 

Sign up

 

 

Danish Institute for International Studies

Gammel Kalkbrænderi Vej 51A, 2100 Copenhagen - Ph.: +45 3269 8660 - event@diis.dk - www.diis.dk

 

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