European Union Financial Regulation, Banking Union, Capital Markets Union and the UK
the international financial crisis and the sovereign debt crisis, the
European Union (EU) undertook major reforms in three key financial
policy areas: financial regulation, Banking Union and Capital Markets
Union. This paper examines the dynamics of these reforms by focusing on
the preferences and influence of the United Kingdom (UK) in the policy
process. It is argued that the UK has played a variety of roles –
‘foot-dragger’, ‘fence-sitter’ and ‘pace-setter’ - in the policies under
The (at times considerable) British influence was geared
towards the attainment of preferences that were shaped by domestic
politics and political economy, first and foremost the interests of the
financial services industry and the City of London.
Lucia Quaglia (DPhil Sussex) is Professor of Political Science at the
University of York. Prior to York, she was Senior Lecturer in
Contemporary European Studies at the University of Sussex. Her most
recent books include: (with D. Howarth) The Political Economy of Banking
Union, Oxford University Press (2016); The European Union and Global
Financial Regulation, Oxford University Press (2014). She was awarded
research fellowships from the Hanse-Wissenschafts Kolleg, the University
of Bremen, the Fonds National de la Recherche in Luxembourg, the Max
Planck Institute in Cologne, the Scuola Normale Superiore and the
European University Institute in Florence.
This policy brief is a product of our joint research programme with Speri and Feps and following a recent event at which the subject was debated.