Challenges in the Eurozone

Challenges in the Eurozone: How to regulate debt markets?

Currently European debt markets face two particular challenges both of which will be addressed by Prof. Kaserer. The first is related to markets for sovereign debt where after the intervention of the ECB investor confidence seems to return. However, sovereign debt markets still suffer from severe institutional flaws that have not yet been addressed by political leaders in the EU.

The second challenge is related to the future of the European banking industry. Even though a comprehensive regulatory response to the financial turmoil of 2008 is under way, there are serious concerns that overall this could lead to inefficient overregulation. In fact, we should be concerned that the European banking sector today is still not so resilient as it should be. Some features of a smarter regulation will be discussed.