This chapter examines the provisions of the Treaty on the Functioning of the European Union regulating capital movements both within the internal market and between Member States and third countries (Articles 63–65 TFEU). It reflects critically on the impact of these provisions on the activities of two distinct categories of market participant: corporate actors and (Union) citizens. The legal framework governing both intra- and extra-EU capital movements is characterized as an unusual mixture of the familiar and the exceptional. On the one hand, the free movement of capital is now an integral part of the internal market. At the same time, however, it retains key distinguishing features: a unique evolutionary trajectory; an external scope of application; and an uncharacteristic degree of residual direct Member State control.
This chapter considers the evolution and main features of EU financial markets regulation and scholarship. It focuses on three distinct themes that define the field. First, it considers the transformative ambitions of the regulatory programme with respect to the embedding of market finance and the construction of the internal financial market. Second, it considers the striking shifts in the location and intensity of financial markets intervention that have characterized the field and their implications. Finally, it considers the extent to which EU financial markets regulation has been the seat of major institutional innovation and constitutional uncertainty, and compares the different dynamics of institutional innovation with respect to EU banking regulation (including in relation to Banking Union). It concludes with some modest predictions for the future.
This chapter highlights the main characteristics of economic and monetary union, one of the core policy fields of the European Union, the several stages of its metamorphosis and the main legal problems involved, as well as the challenges of today’s system of economic policy coordination that need to be addressed in the future. Special attention is paid to the new economic governance framework that emerged from the European financial and euro area debt crisis, including: the so-called six pack and two pack; the treaty on stability, coordination and governance (fiscal compact); the European stability mechanism; and the role of the European Central Bank in crisis management. The single resolution mechanism as the main feature of the Banking Union is also discussed.
This Chapter examines the issues associated with regional coordination in the regulation of financial markets by focusing on the EU. It begins by considering the need to accommodate cross-border capital flows, along with the resulting regulatory strategies. It then discusses the relationship between Member State-based supervision at the national level and supranationally based supervision at the EU level. It also evaluates various types of interaction between these supervisory structures and different levels of supervisory arrangements, with particular reference to self-regulation- and competition-based market discipline vs supervisory hierarchies, as well as multilateral institutional structures vs supervisory colleges. In addition, the Chapter analyses the EU’s adoption of a two-tier approach to financial oversight to control systemic risk; namely, micro- and macro-prudential supervision by the European Systemic Risk Board. Finally, it explains the role of the European Banking Union in efforts to centralize specific micro- and macro-prudential supervisory tasks via the Single Supervisory Mechanism.