European control mechanisms for fiscal stability set tight frameworks for banks and traders


During times of crisis, the impact of government authorities on financial markets tends to increase. When the worldwide financial crisis evolved into a euro crisis on the continent, the EU responded accordingly: Instead of forcing hard hit countries like Greece to leave the single currency, the German and French governments decided to push for further integration of the EU’s financial market – and, with it, enhanced regulatory supervision.

Enforced control mechanisms and the empowerment of the European Central Bank as guarantor of financial stability provide today’s framework for financial services. In this regard, a discussed financial transaction tax – supported by an increasing number of member states and projected to be implemented in 2016 – should force banks and traders to take over costs of the past crisis.