The death of the European Banking Union

In July 2017, Louis Rouanet argued that the bail out of two Italian banks, Veneto Banca and Banca Popolare di Vicenza, would be a ‘deathblow to the European Banking Union’. EconPol researcher Timo Wollmershäuser agrees, and says the correlation between risk premia for sovereigns and banks has since sharply increased to the high levels observed before the start of the Banking Union.