Essay About European Coal And Single Supervisory Mechanism

Outline for a European Banking Union
InhaltA.        From the European Coal and Steel Union to the Banking Union        B.        The First Pillar: the Single Supervisory Mechanism (SSM)        C.        The Second Pillar: the Single Rulebook        D.        The Third Pillar: the European Deposit Insurance Fund        E.            The Fourth Pillar: the Single Resolution Mechanism (SRM)        F.            Conclusion        G.        References        From the European Coal and Steel Union to the Banking UnionHistorical developments towards a European Banking Union After World War II when Europe, particularly Germany and France, has been seriously injured and partly destroyed, the need for strong economic integration was emerging. This idea for closer integration in Europe was promoted by Jean Monnet which is considered today one of the founding fathers of the European Union as a chief architect of European unity. With the so-called Schuman plan inspired by Jean Monnet, in 1950 which was elaborated to politically and economically reconcile Germany and France after the war, the peaceful reconstruction of West-Germany was initiated. Through the European Coal and Steel Community (ECSC) that has been introduced in 1951 intended to eliminate barriers and encourage competition and a new period of economic prosperity in Europe. Strongly influenced by the idea of a supranational community in Europe, politicians attempted to integrate the crucial and strategic sectors of Coal and Steel.[1] The ECSC had like today’s European Commission a supranational organ which, at the beginning, was chaired by Jean Monnet.In 1957 with the Treaty of Rome and the creation of the European Economic Community (EEC) came the idea of a common market where goods, services, labor and capital could freely move. This movement towards closer economic and political cooperation in Europe, principally initiated by Germany and France, produced a series of benefits: cost reductions for market participants due to free circulation of goods and persons. This also implied also integration of technical standards and laws. This unification eased trade between participants and promoted the idea of a common market. Although market integration for goods was discussed at that time, monetary integration was not yet taken into consideration.