The British referendum on continuing membership of the European Union (EU) in June 2016 represented a turning point in the relationship between the United Kingdom (UK) and the EU. This book investigates the implications of Brexit for the EU and the UK, placing this assessment in the context of the long-term evolution of UK-EU relations. The authors relate these findings to debates within the literature on EU policy-making, comparative politics, and political economy. The first part of this comprehensive volume explores the implications of Brexit for key policy areas, namely the single market, finance, and migration. The policies selected are those in which the consequences of Brexit are likely to be most significant because they are linked to the 'four freedoms' in the Single Market. The second part of the book explores important 'horizontal' or thematic issues, namely lessons from Brexit for theories of integration, the balance of power in the EU amongst the main member states post-Brexit, the evolution of the domestic political contestation in the EU, and the impact of Brexit on domestic politics in the UK. This book was originally published as a special issue of the Journal of European Public Policy.

The global financial crisis that reached its peak in late 2008 has brought the importance of financial services regulation and supervision into the spotlight. This book examines the governance of financial services in the EU, asking who governs financial services in the EU, how and why, and explaining where the power lies in the policy-making process. It covers the main financial services: banking, securities, payments systems, clearing and settlement. Addressing the politics and public policy aspects of financial market integration, regulation and supervision in the European Union, this book conducts a theoretically-informed and empirically-grounded analysis of financial services governance from the establishment of Economic and Monetary Union (1999) and the launch of the Financial Services Action Plan (1999), to date. It also assesses the EU responses to the global financial crisis. Providing a reliable and unique insight into the politics of financial services regulation in the EU based on an extensive programme of interviews with policy makers and stakeholders across Europe, the book will be of great topical interest to students and scholars of European Union studies, political science and political economy.

This book fills a gap in academic literature on the politics and public policy aspects of central banking in Europe, by conducting a theoretically-informed and empirically-grounded analysis of central banking governance before and after the establishment of the Economic and Monetary Union (EMU). The main framework for analysis is a 'multi-level institutionalist approach', articulated on three interconnected levels: the 'systemic-level', which encompasses the European, transnational and international arenas; the 'national-level', which considers the configuration of the domestic socio-economic and political environment in which each central bank operates; and the 'micro-institutional level', which deals with the specific features of each central bank. Methodologically, the research engages in a structure-focused comparison, using qualitative methods. In order to do so, it conceptually develops and empirically applies the notion of 'mode' of central banking governance, operationalised through four main components: the legal framework central bank 'autonomy' (or de facto independence) from the political authorities central bank 'policy capacity' in three policy areas that are crucial for central banking governance, namely monetary and exchange rate policies, financial regulation and supervision central bank legitimacy. Empirically, this monograph focuses on the Bank of England, the Bundesbank, the Banca d'Italia and the ECB over the period 1979 to present, with particular attention paid to the last decade. It is grounded in in-depth and extensive primary research, enriched by interviews with policy-makers. Central Banking Governance in the European Union will be of interest to students and researchers of Politics, Economics and Political Economy.

The global financial crisis that reached its peak in late 2008 has brought the importance of financial services regulation and supervision into the spotlight.

This book examines the governance of financial services in the EU, asking who governs financial services in the EU, how and why, and explaining where the power lies in the policy-making process. It covers the main financial services: banking, securities, payments systems, clearing and settlement. Addressing the politics and public policy aspects of financial market integration, regulation and supervision in the European Union, this book conducts a theoretically-informed and empirically-grounded analysis of financial services governance from the establishment of Economic and Monetary Union (1999) and the launch of the Financial Services Action Plan (1999), to date. It also assesses the EU responses to the global financial crisis.

Providing a reliable and unique insight into the politics of financial services regulation in the EU based on an extensive programme of interviews with policy makers and stakeholders across Europe, the book will be of great topical interest to students and scholars of European Union studies, political science and political economy.

This book fills a gap in academic literature on the politics and public policy aspects of central banking in Europe, by conducting a theoretically-informed and empirically-grounded analysis of central banking governance before and after the establishment of the Economic and Monetary Union (EMU). The main framework for analysis is a 'multi-level institutionalist approach', articulated on three interconnected levels: the 'systemic-level', which encompasses the European, transnational and international arenas; the 'national-level', which considers the configuration of the domestic socio-economic and political environment in which each central bank operates; and the 'micro-institutional level', which deals with the specific features of each central bank. Methodologically, the research engages in a structure-focused comparison, using qualitative methods. In order to do so, it conceptually develops and empirically applies the notion of 'mode' of central banking governance, operationalised through four main components: the legal framework central bank 'autonomy' (or de facto independence) from the political authorities central bank 'policy capacity' in three policy areas that are crucial for central banking governance, namely monetary and exchange rate policies, financial regulation and supervision central bank legitimacy. Empirically, this monograph focuses on the Bank of England, the Bundesbank, the Banca d'Italia and the ECB over the period 1979 to present, with particular attention paid to the last decade. It is grounded in in-depth and extensive primary research, enriched by interviews with policy-makers. Central Banking Governance in the European Union will be of interest to students and researchers of Politics, Economics and Political Economy.

The establishment of Banking Union represents a major development in European economic governance and European integration history more generally. Banking Union is also significant because not all European Union (EU) member states have joined, which has increased the trend towards differentiated integration in the EU, posing a major challenge to the EU as a whole and to the opt-out countries. This book is informed by two main empirical questions. Why was Banking Union - presented by proponents as a crucial move to 'complete' Economic and Monetary Union (EMU) - proposed only in 2012, over twenty years after the adoption of the Maastricht Treaty? Why has a certain design for Banking Union been agreed and some elements of this design prioritized over others? A two-step explanation is articulated in this study. First, it explains why euro area member state governments moved to consider Banking Union by building on the concept of the 'financial trilemma', and examining the implications of the single currency for euro area member state banking systems. Second, it explains the design of Banking Union by examining the preferences of member state governments on the core components of Banking Union and developing a comparative political economy analysis focused on the configuration of national banking systems and varying national concern for the moral hazard facing banks and sovereigns created by euro level support mechanisms.

The UK and Multi-level Financial Regulation examines the role of the United Kingdom (UK) in shaping post-crisis financial regulatory reform, and assesses the implications of the UK's withdrawal from the European Union (EU). It develops a domestic political economy approach to examine how the interaction of three domestic groups - elected officials, financial regulators, and the financial industry - shaped UK preferences, strategy, and influence in international and EU-level regulatory negotiations. The framework is applied to five case studies: bank capital and liquidity requirements; bank recovery and resolution rules; bank structural reforms; hedge fund regulation; and the regulation of over-the-counter derivatives. It concludes by reflecting on the future of UK financial regulation after Brexit. The book argues that UK regulators pursued more stringent regulation when they had strong political support to resist financial industry lobbying. UK regulators promoted international harmonisation of rules when this protected the competitiveness of industry or enabled cross-border externalities to be managed more effectively; but were often more resistant to new EU rules when these threatened UK interests. Consequently, the UK was more successful at shaping international standards by leveraging its market power, regulatory capacity, and alliance building (with the US). But it often met with greater political resistance at the EU level, forcing it to use legal challenges to block reform or secure exemptions. The book concludes that political and regulatory pressure was pivotal in defining the UK's 'hard' Brexit position, and so the future UK-EU relationship in finance will most likely be based on a framework of regulatory equivalence.

Despite the role of shadow banking in the building up of the 2008 international financial crisis, the massive size of this sector, its cross-border nature, and the risks it entails for financial stability, the post-crisis regulation of shadow banking has remained rather feeble. Why? The Perils of International Regime Complexity in Shadow Banking identifies a 'game of shadows', which unfolded recursively concerning the definition, monitoring, and regulation of shadow banking internationally. Thus, states, regulators, and private actors tended to cast light away from various parts of the shadow banking system - shadow banking was (re)fined over time, its measurement was narrowed down, lessening the (perceived) need for regulation. The playing out of such a game was facilitated by the international architecture for shadow banking governance, which is a 'regime complex' characterized by the presence of multiple institutions and elemental regimes governing a set of related issues. Indeed, shadow banking is a quintessential case for demonstrating the perils of international regime complexity, which magnifies problems that are endemic in governing global finance - namely, interstate competition, disagreement between technocratic bodies, and the power of the financial industry - while splintering solutions, due to the fragmentation of regulatory authority. Empirically, this book examines various elemental regimes concerning different aspects of shadow banking, namely: international standards for defining, measuring, and monitoring global shadow banking; international standards for shadow banking entities, including money market funds, hedge funds, and investment funds; international standards for shadow banking activities, such as securitization, securities lending, and repos; international standards for bank capital exposures to shadow banking.

This book provides the first comprehensive account of post-crisis international regulation of derivatives by bringing together the international relations literature on regime complexity and the international political economy literature on financial regulation. It addresses three questions: What factors drove international standard-setting on derivatives post-crisis? Why did international regime complexity emerge? And how was it managed and with what outcomes? This research innovatively combines a state-centric, a transgovernmental, and business-led explanations. It examines all the main sets of standards (or elemental regimes) concerning various aspects of derivatives markets, namely: trading, clearing, and reporting of derivatives; resilience, recovery and resolution of central counterparties; capital requirements for bank exposures to central counterparties and derivatives; margins for derivatives non-centrally cleared. It is argued that regime complexity in derivatives ensued from the multi-dimensionality and the interlinkages of the problems to tackle, especially given the fact that it was a new policy area without a focal international standard-setter. Despite these challenges, international cooperation resulted in relatively precise, stringent, and consistent rules, even though there was variation across standards. The main jurisdictions played an important role in managing regime complexity, but their effectiveness was constrained by limited domestic coordination. Networks of regulators gathered in international standard-setting bodies deployed a variety of formal and informal coordination tools to deal with regime complexity. The financial industry, at times, lobbied for less precise and stringent rules and engaged in 'venue shopping', whereas, other times, it contributed to the quest for regulatory consistency.

The European Union and Global Financial Regulation examines the influence of the European Union (EU) in regulating global finance, addressing several inter-related questions. Why does the EU 'upload' international financial regulation in some cases, 'download' it in other cases, and 'cross-load' either actively or passively in other instances? Has this changed over time, especially after the third stage of Economic and Monetary Union and the completion of the single financial market, or after the global financial crisis? Under what conditions is the EU more or less likely to upload, download or cross load rules? Through which mechanisms does this take place? Overall, does the EU act as a pace setter in regulating global finance, or is it mainly a follower? Why? The key explanatory variable used in this research is the concept of 'regulatory capacity', applied to the EU and the US, distinguishing between 'strong' and 'weak' regulatory capacity. The influence of the EU in global financial regulation depends on the combinations of EU and US regulatory capacities. When EU regulatory capacity is weak and US regulatory capacity is strong, the US will mainly upload its domestic rules internationally and/or actively cross load them to the EU, whereas the EU will mainly download international rules. When the EU regulatory capacity is strong and US regulatory capacity is weak, the EU is able to upload its rules internationally and/or actively cross load them to third countries. When the EU and the US regulatory capacities are weak, private sector governance prevails. When the EU and US regulatory capacities are strong, both jurisdictions seek to upload and cross load their domestic rules.

The creation of the single European currency and of the European Central Bank in the context of a wider economic and political union has been one of the most important projects of institution-building and policy development in post-1945 Europe. This book seeks both to place this project in its longer-term historical context and to complement the many secondary texts on this highly topical subject. It brings together for the first time, and offers analytical commentary on, the classic documents relevant to the process of constructing and developing European economic governance based on Economic and Monetary Union (EMU). The book includes the key documents concerned with developing and implementing policies from the period of inception and launch of European monetary union on 1 January 1999 to the end of its first decade and the onset of the global financial and economic crisis. The book makes available a large collection of documents about the policies and governance of the European economy, based around the creation of EMU. They are presented in a convenient and accessible form both for scholars and students and for market and policy practitioners concerned with the development of Europe's political economy. Those who are new to the subject should benefit from easy access to basic texts and related commentaries and references. Those who are more familiar with EMU will have a single key source of comprehensive and up-to-date references in terms of which past and current debates and policies have been framed. The primary sources that are made available here would otherwise be costly to access and use. In many cases documents have been rescued from obscurity. Their availability should help to inform and enrich public debate about the historical development of EMU and how the European economy is governed. In addition, the book offers extensive commentaries at the beginning of each section as well as on individual documents that seek to clarify changes in meanings and understandings over time and the background to these changes.

The creation of the single European currency and of the European Central Bank in the context of a wider economic and political union has been one of the most important projects of institution-building and policy development in post-1945 Europe. The first volume of European Economic Governanceand Policies seeks both to place this project in its longer-term historical context and to complement the many secondary texts on this highly topical subject. It brings together for the first time, and offers analytical commentary on, the classic documents relevant to the process of constructing and developing European economic governance based on Economic and Monetary Union (EMU). The book includes the 'classic' documents concerned with EMU and economic governance from before 1914 to the launch of European monetary union on 1 January 1999.
This volume makes available a large collection of often neglected historical documents about the governance of the European economy, based around the creation of EMU. They are presented in a convenient and accessible form both for scholars and students and for market and policy practitioners concerned with the historical development of Europe's political economy. Those who are new to the subject should benefit from easy access to basic texts and related commentaries and references. Those who are more familiar with EMU will have a single key source of comprehensive and up-to-date references in terms of which past and current debates and policies have been framed. The primary sources that are made available here would otherwise be costly to access and use. In many cases documents have been rescued from obscurity. Their availability should help to inform and enrich public debate about the historical development of EMU and how the European economy is governed. In addition, the book offers extensive commentaries at the beginning of each section as well as on individual documents that seek to clarify changes in meanings and understandings over time and the background to these changes.