Understanding the role of banks in cross-border finance has become an urgent priority. Cross-border banks have played a central role in the dynamics of the global crisis of 2007-2009. First, European banks had a surprisingly large exposure to the US securitised asset markets, which arose to a significant extent through global banks acting either on the buying or selling side in these markets. Second, the breakdown in credit and asset markets was an international phenomenon, with cross-border linkages suffering disproportionately due to greater information problems vis-à-vis cross-border counterparties and the differences in regulatory regimes. Third, currency mismatches in funding became evident, with European banks suffering a dollar shortage that ultimately required resolution through a major currency swap initiative among the main central banks. Fourth, the provision of fiscal support for distressed banks was especially problematic in relation to cross-border activities. The rescue of multi-country banks, such as Dexia and Fortis, required the governments involved to devise ad hoc, ex-post burden-sharing agreements. In relation to emerging Europe, there were also fears that the policies of home-country governments might encourage parent banks to fail to support the operations of affiliates. This report analyses key aspects of cross-border banking, takes a European focus and derives policy recommendations based on them. Chapter 1 of the report first documents the evolution of cross-border banking in Europe in the two decades prior to the crisis. We then turn to the role cross-border banking played during the crisis of 2007-2009, with a key focus on whether crossborder activities have exacerbated the crisis or helped to mitigate it. We also analyse the regulatory response to cross-border problems in the crisis.

Brüssel, 1. Juli 1965, kurz vor Morgengrauen. Im "Saal der Katastrophen" platzt die Ministerratssitzung über die Finanzierung der europäischen Landwirtschaftspolitik. Aus Protest zieht die französische Regierung ihre Vertreter aus Brüssel ab. Doch schnell wird klar, dass es um mehr geht als nur um Weizen, Milch und Zucker. Es ist der Beginn der bislang größten Verfassungskrise in der Geschichte der Europäischen Gemeinschaften. Mehr als ein halbes Jahr lang führen die Regierungen der Mitgliedstaaten einen "Nervenkrieg" um die Zukunft der wirtschaftlichen und politischen Integration Westeuropas. Am Ende gibt die französische Regierung ihre "Politik am Abgrund" auf und kehrt in die Gemeinschaften zurück. Wie konnte es zu einer solchen Eskalation kommen? Standen die Europäischen Gemeinschaften tatsächlich vor dem Aus? Wer ging am Ende als Sieger aus der Konfrontation hervor? Und warum sind die Folgen der Krise in der heutigen Europäischen Union immer noch spürbar? Unter Rückgriff auf neue Quellen analysiert Philip Bajon diese schwierige Phase auf dem Weg nach Europa.

I partiti politici sono stati attori importanti del processo di integrazione europea. Sin dai primi anni della Comunità Europea i partiti nazionali hanno cercato di coordinare le loro attività in strutture sovranazionali sempre sempre più complesse. dopo