2004 | nr 25 A New All-European Development Model in an Enlarged EU : Social and Economic Aspects | 131--173
Financial Integration Policy in the EU.Perspectives and Challenges
This paper deals with the background and evolution, as well as the challenges currently facing financial integration policy in the EU. It is argued that the EU approach to the financial services sector has been largely conditioned by the central objectives of EU economic policy. Accordingly, the introduction of the Euro in the late 90s led to a new impetus in this area. As a result, a new regulatory framework is being set up, pertaining especially to the EU capital markets. This is to eliminate national boundaries across markets and to replace national legislation in the EU member states. To the extent that financial integration policy is biased towards economic considerations, as opposed to social and political ones, it displays the same type of imbalances as the EU process of integration and construction more generally. These imbalances however put its long-term viability into question. This is especially the case, in view of the latest enlargement of the EU and the "newness", as well as fragility, of the financial services sectors of the new member states. (original abstract)
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