Please enter a search term to begin your search.

Home » Archive » What Is Still Missing To Achieve An Optimum Currency Area Under Eu Law?

Antonio Marcacci
What Is Still Missing To Achieve An Optimum Currency Area Under Eu Law?
Comments (0)

The article normatively assesses the effectiveness of the European Union’s post-crisis reforms in the banking field against the economic theory of the Optimum Currency Area, with the aim to ascertain whether the legal requisites claimed by this theory have been institutionally incorporated. First, the article lists the economic criteria that a currency area needs to fulfil in order to be optimal. Second, it explains the implications of such a theory for the institutional design of a currency area. Third, it tests such theoretical findings against the actual architecture established by the recent reforms. The findings show that the new institutional design has many deficiencies. In particular, the governance structure of the Single Supervisory Mechanism is weak because it is based mainly on soft-law measures and on coordination between the European Banking Authority and the European Central Bank. Due to constitutional constraints, the current institutional infrastructure does not include the necessary fullyfledged lender of last-resort and fiscal backstop. Finally, although it was legally feasible, the creation of a Single European Deposit Guarantee Scheme is still a legislative proposal of the European Commission.

download this article in PDF format ›

download IJPL volume 1 2017 in PDF format ›