Necessary desirability: The inherent contradiction in the European system. EuropEos Commentary No. 11, 9 June 2011

In all political systems there is a gap between the rhetoric of electoral programmes and the practical work of institutions, argues author Riccardo Perissich, but the ‘vision thing’ is often a necessary prerequisite to reaching difficult decisions. When it comes to European institutions, which include the member states acting collectively, the desirable vision – the goal of European unity – has always been there and is still very much alive. Also, the existence of a broadly defined political goal has often facilitated agreements that were in fact purely necessary. However, because we lack a pan-European constituency to debate it, the narrative about this goal has been translated into different languages and is all but common. In fact, we have never seriously tried to unify it. Indeed, Europeans stopped debating what is desirable a long time ago: they simply react to events.

The fiscal implications of a banking union. Bruegel Policy Brief 2012/02 [3?], September 2012

Systemic banking crises are a threat to all countries whatever their development level. They can entail major fiscal costs that can undermine the sustainability of public finances. More than anywhere else, however, a number of euro-area countries have been affected by a lethal negative feedback loop between banking and sovereign risk, followed by disintegration of the financial system, real economic fragmentation and the exposure of the European Central Bank. Recognising the systemic dimension of the problem, the Euro-Area Summit of June 2012 called for the creation of a banking union with common supervision and the possibility for the European Stability Mechanism to recapitalise banks directly.