Bruegel just published my new essay, Europe's Radical Banking Union, in which I go back to the genesis of banking union and take stock of its current development and likely impact. The text is a significantly expanded and updated version of a chapter to be published later this year in an Oxford University Press volume.
In addition to presenting the architecture and early implementation of banking union, and especially of the new role of the ECB as banking supervisor, the essay makes the case that two major developments, the ECB's OMT program of 2012 and the shift of EU policy stance from bank bail-outs to "bail-in", would not have been possible without the banking union decision made by the euro area's political leaders in late June 2012. Seen in that light, the shift to banking union was the true (and mostly unsung) turning point of the euro crisis.
Download the file here if the above link does not function properly.