Banking Union

Charles Wyplosz considers the need for a European banking union and common regulator. His conclusion is that the ECB must act as lender of last resort for the Eurozone, but that the Commission is making a mistake by trying to set up a single regulator for the entire European Union:

Finally non-EZ countries are revolting because they are dragged into this business. They are right. They have their own central banks that can act as lender in last resort and therefore have no need for ECB intervention. The commission is making a grave mistake when it proposed an EU solution for a EZ problem. Even though there are some technical difficulties involved, this should be easy to solve because there are few private interests at stake.