The Swede (theswede) wrote in european_union,
The Swede

Bank power in the EU

An interesting, and quite unexpected, fallout of the recent financial turmoil appears to be the vastly increased power of the EU in financial matters. Sure, the UK is taking the hard "we lead, do as we say" approach, but they're not powerful enough to make that reality and they've always had the "fog over the channel, the continent isolated" approach to both trade, financials and politics. It's highly likely that the recently comparatively unfettered capitalism in the financial markets is going to be but a memory for a long time to come, and that this will not cause either much of an uproar (rather the contrary) or any appreciable negative effects - at the very least, nothing resembling the recent negative effects from the US style financial views which have predominated.

The recent moves by the ECB and the various EU countries, acting much more in a unified manner than ever before, appears to reinforce that the EU really has a powerful role to fill in matters of this kind. A strong, unified European financial market will make for a new powerhouse, and with the decline in US power there is an opportunity to grab a share. The Asian markets are well up for that task, and will be going for the jugular. It's important that the EU market is strong enough to put up a fight, and none of the individual countries have enough clout to do that.
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