Taming Europe’s Banks

In the month since the European Commission unveiled its blueprint for banking reform, significant resistance has emerged, with some warning that European banks’ competitiveness would suffer, and others demanding stronger mitigation of banking risk. Meanwhile, Europe’s capacity to avoid another financial meltdown hangs in the balance.

PARIS – Last month, the European Commission unveiled its much-anticipated blueprint for banking reform, aimed at reining in risk-taking by the European Union’s largest banks. But the proposal has met significant resistance, with some warning that it would erode European banks’ competitiveness, and others arguing that it is inadequate to mitigate banking risks effectively. How this debate unfolds will have profound implications for the EU’s future.

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