The Role of Financial Stability in EU Law and Policy

European Monographs Volume 101

Since the outbreak of the 2008 ­financial crisis, European Union (EU) institutions and Member States have engaged in a major effort to repair the architecture of economic governance of the European Economic and Monetary Union (EMU). This book takes as its starting point the unclear notion of financial stability, which only recently has received a more detailed legal analysis. It  examines the evolution of the concept of financial stability during the financial crisis and provides a conceptual framework in order to demonstrate that financial has become a foundational objective in Europe and has set a new normative framework in EU law and policy. Arguing that ­financial stability is a foundational objective in EU law and policy based on certain normative instruments, this ground-breaking book provides an in-depth and original understanding of the newly developed framework to attain supranational financial stability.

In its analysis of the legal implications of these new instruments, the study examines topics and issues such as the following:

• the concept and normative instruments of financial stability at European level;
• the renewed economic governance in Europe;
• the financial assistance mechanisms developed in Europe;
• the new regulatory environment for banks at European level;
• the Single Supervisory Mechanism and the role of the European Central Bank (ECB) therein;
• the new framework for banking resolution, with specific focus on the Single Resolution Mechanism.

The author shows in detail how an appropriate level of supranational regulation, supervision, burden-sharing and rescue measures strengthen ­financial stability.

Thereby, the book will appeal to officials in EU institutions and agencies as well as lawyers and academics in EU law and in banking/financial law to gain a clear understanding of role of financial stability and its normative instruments in EU law and policy.

Gianni Lo Schiavo is currently working as a lawyer at the ECB. He obtained a PhD in EU Law at King’s College, London, and has written numerous articles and chapters in EU administrative law, EU financial/banking law and EU competition law.