Role of Financial Stability in EU Law and Policy

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 fi¬nancial stability during the fi¬nancial crisis and provides a conceptual framework in order to demonstrate that ¬financial stability 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 fi¬nancial 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; and
• – the new framework for banking resolution, with specifi¬c 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 of¬ficials 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.