In the aftermath of the financial crisis, the question of how to handle a big bank’s collapse has arisen. Large banks perform functions that if disrupted could seriously damage the financial sector and the real economy. The European Union’s new resolution regime introduced by the Bank...

The euro is widely believed to be a currency without a sovereign state. To make the euro a stable currency, many commentators recommend a move to a federal fiscal Europe by issuing eurobonds or levying European taxes. By contrast, we argue in this paper that the EU and the euro area member...

Cross-border banking is currently not stable in Europe. Cross-border banks need a European safety net. Moreover, a truly integrated European-level banking system may help to break the diabolical loop between the solvency of the domestic banking system and the fiscal standing of the national...