Presentation for the international conference “The Future Prospects of Latvia Within the EU’s Development: Discussions on Federalism and Its Meaning in Society”, Riga, 1 November 2013.

1. Missing elements of a “federal EMU”
Marius Skuodis
Institute of International Relations and Political Science, Vilnius University
Presentation for the international conference “The Future Prospects of
Latvia Within the EU’s Development: Discussions on Federalism and Its
Meaning in Society”, Riga, 1 November 2013.

2. Outline
• Do we need a federal EU?
• The weakest component of “federal EMU”
reforms;
• A practical case: creating the banking union.
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3. The euro crisis: do we need a federal EU?
EU level causes
Uneven
Uneven
integration
integration
Ineffective
Ineffective
rules
rules
National level
causes
National
National
banking
banking
sector
sector
Insufficient
Insufficient
quality of
quality of
governance
governance
Type of reforms
Towards a
federal EU
Incremental
change
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4. The weakest component of “federal EMU”
reforms: political integration
Supranational
decision-making
Towards a
federal EU
Collective ownership and
responsibility
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5. Three pillars of the banking union
Single
Single
Supervisory
Supervisory
Mechanism
Mechanism
Single
Single
Resolution
Resolution
Mechanism
Mechanism
Single
Single
deposit
deposit
guarantee
guarantee
framework
framework
Single rulebook
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6. Redistributive policy before political
integration: towards an incomplete
federal framework?
SSM –
SSM –
November
November
2014
2014
SRM –
SRM –
recent
recent
proposal
proposal
?
?
Negotiations on the single rulebook
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7. Conclusions
• Debates on the need for bigger economic and
political integration vs. incremental institutional
improvements are not yet finished;
• The weakest component of “federal EMU”
reforms is how to increase collective ownership and
responsibility for supranational decision-making;
• The banking union indicates that reforms involving
redistribution cannot go before political
integration.
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8. Thank You!
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