The politics of an asymmetric Banking Union

Abstract

This paper takes stock of the first few years of the functioning of Banking Union by examining the politics an asymmetric Banking Union. It first explains why Banking Union was set up in an incomplete and asymmetric way. It then explains how and why this has resulted in asymmetric effects,beside the original intended effects. It is argued that two competing coalitions mainly driven by different economic interests have shaped the configuration of Banking Union and have beendifferently affected by it. The paper also reflects on the disjuncture (meaning, overlap and underlap) of competences between levels of governance and supranational –intergovernmental dynamics in Banking Union.