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 Research Projects at the MPIfG

The Political Economy of European Capital Markets Union in the Context of the Twin Crises of Growth and European Debt

Marina Hübner


 
In the broad range of literature that exists on the politics of European financial integration, the EU’s increasing stake in financial regulation has largely been described as “power without purpose.” Yet the purposeful use of financial instruments as public governing tools is still poorly understood. Following on from a dissertation completed in spring 2018, the current project addresses this gap in our knowledge by studying the politics behind the Capital Markets Union (CMU). The CMU has two overarching goals: 1) financial integration and 2) transformation of Europe’s largely bank-based financial structure to market-based finance. The CMU is an important pillar of EU plans to tackle economic stagnation and euro area instability. Building on insights from European integration scholarship and critical political economy, this research identifies the process through which finance has emerged as the solution to a set of political and economic challenges at the heart of the EMU and the EU. The findings are related to the broader debate on the future institutional design and viability of the EMU and the pivotal role of markets in European integration. Project duration: October 2018 to November 2019.
 

 
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