48^th International Scientific Conference 2017

CONTROVERSIES OF FINANCIAL FUNCTIONING AND THE “CONTACTUALLY” EU ECONOMY

Kristijan Ristić, Andrijana Milošević, Nataša Marjanović

Abstract:  The current financial crisis pointed to the importance of establishing a Union Banking Union, which would allow for a response to financial problems through regional banking supervision. The basic results of this research will show in a synthetic way that the formation of the banking union in the formal sense contributes to the strengthening of the integration of the economies of the member states, the promotion of confidence in the EU and the stability of the banking sector, but with the key shortcomings in the functional scope of such a concept. Mechanisms for bank supervision and bank rehabilitation in this context do not provide a financial stability management lever because the decision-making process is too long to provide an adequate and quick response in the event of a financial collapse. The treatment of only large banks and quotas of banking sectors of member states that do not belong to the European monetary union further aggravate the problem. Financial challenges in terms of "maintenance of the life" of the common currency euro - the so-called. The euro paradox, the inefficiency of the ECB's monetary policy with a strong focus on price stability and insistence on monetary easing (QE), negative interest rates that in the long run generate greater risk of placement and contaminate capital flows, retrograde ECB moves in the form of using the so called. "Helicopter money" to encourage the consumption of companies and individuals in over-indebted member countries, only further demonstrates that the financial stability that the EU, and which is designated as a guarantor and sustainability of the EU project, and which strives to strive within its financial and banking management, Numerous sites that are essentially endangering. This is a confirmation that the EU's integration consistency will be possible only through an agreement that it has essentially created. An EU-led peace project from the 1950s and ways to overcome the EU crisis 2008-2017 is therefore an "agreement" or a consensus that goes beyond any economic and financial legality.

Keywords:  ЕU crisis, thе financial policy of thе ЕU, ЕU finаnciаl rеgulаtions

Published: October 6, 2017.  p. 285-302   PDF