Competition Policy, Regulatory Architecture, and Public Intervention in the Crisis

Author(s):  
Xavier Vives

This chapter examines the optimal design of the financial regulatory architecture and the relationship it should have with the competition policy authority. It first considers cases in the European Union and the developments since the adoption of banking union proposals, along with the reform in the United Kingdom since the 2007–2009 crisis. It then discusses public interventions in crisis and how competitive distortions of state aid and mergers induced by the crisis can be dealt with by competition policy. It also explores the consequences of state ownership and the performance of hybrid institutions such as savings banks as well as the state aid policy in the EU banking sector. The chapter goes on to assess the role of competition policy in addressing the too-big-to-fail (TBTF) problem before concluding with an analysis of the treatment of mergers in crisis situations, focusing on cases in Spain, the United Kingdom, and the United States.

Author(s):  
Xavier Vives

This chapter examines the competition policy practice in different jurisdictions, focusing on the European Union, the United Kingdom, the United States, and a number of emerging and developing economies (Brazil, China, India, Mexico, Russia, and southern Mediterranean countries). It begins with a discussion of the concerns of the competition authorities in the European Union and the United Kingdom about the banking sector and proceeds by considering practice in the main competition policy areas that have been active in banking: mergers, cartels and restrictive agreements, and state aid. Among other issues, it reviews the tensions between the prudential and the competition authorities, the recent cases of international cartels on Libor and foreign exchange market, and some landmark cases in the European Union. It also looks at consumer protection, with a new impulse from behavioral ideas, and the convergence in aims between consumer protection and competition policies.


Author(s):  
Kokkoris Ioannis ◽  
Olivares-Caminal Rodrigo

This chapter addresses the initiatives of the European Commission to maintain the financial stability of the banking sector. It analyses the regulatory reforms on bank recovery and resolution introduced by the EU aimed at creating a Banking Union, and provides an overview of the Bank Recovery and Resolution Directive (BRRD) by taking into account the crisis management tool innovations. It also offers a critical appraisal of the Single Resolution Mechanism (SRM). The initiatives examined here are envisaged in a two-pronged approach: through the uniform rules of the Banking Union and in a uniform procedure for the resolution of credit institutions and certain investment firms in the framework of a Single Resolution Mechanism (SRM) and a Single Resolution Fund (SRF) on one hand, and its interrelation with the state aid rules of the Treaty for the Functioning of the European Union (TFEU) on the other.


2018 ◽  
Vol 17 (1) ◽  
pp. 3-12
Author(s):  
Andrea Biondi

The United Kingdom Government has recently given its clearest indication yet that a domestic state aid regulatory regime, would have to be in place at the end of the Brexit process. The Competition and Markets Authority has been designated as the domestic state aid regulator. This article reassesses the importance of the provisions on state aid within the European Union legal order and reviews the control of subsidies in international trade law, both under World Trade Organization rules and in the EU's trade agreements with third countries. It further examines the challenges and opportunities presented by a process of decentralization of state aid control in the United Kingdom in the context of the negotiations for a future EU-UK trade agreement.


2018 ◽  
Vol 18 (2) ◽  
pp. 134-151
Author(s):  
Andrea Circolo ◽  
Ondrej Hamuľák

Abstract The paper focuses on the very topical issue of conclusion of the membership of the State, namely the United Kingdom, in European integration structures. The ques­tion of termination of membership in European Communities and European Union has not been tackled for a long time in the sources of European law. With the adop­tion of the Treaty of Lisbon (2009), the institute of 'unilateral' withdrawal was intro­duced. It´s worth to say that exit clause was intended as symbolic in its nature, in fact underlining the status of Member States as sovereign entities. That is why this institute is very general and the legal regulation of the exercise of withdrawal contains many gaps. One of them is a question of absolute or relative nature of exiting from integration structures. Today’s “exit clause” (Art. 50 of Treaty on European Union) regulates only the termination of membership in the European Union and is silent on the impact of such a step on membership in the European Atomic Energy Community. The presented paper offers an analysis of different variations of the interpretation and solution of the problem. It´s based on the independent solution thesis and therefore rejects an automa­tism approach. The paper and topic is important and original especially because in the multitude of scholarly writings devoted to Brexit questions, vast majority of them deals with institutional questions, the interpretation of Art. 50 of Treaty on European Union; the constitutional matters at national UK level; future relation between EU and UK and political bargaining behind such as all that. The question of impact on withdrawal on Euratom membership is somehow underrepresented. Present paper attempts to fill this gap and accelerate the scholarly debate on this matter globally, because all consequences of Brexit already have and will definitely give rise to more world-wide effects.


Author(s):  
Paul Craig

This chapter analyzes engagement and disengagement with international institutions from the perspective of U.K. law. The first part of the chapter considers the relevant legal rules that pertain to engagement by the United Kingdom in international institutions. It is divided into three sections. The first section is directed toward dualism as understood in U.K. constitutional law, whereby an international treaty cannot take effect in national law unless it has been transformed or adopted into domestic law, thereby preventing the executive from undertaking obligations without the imprimatur of the U.K. legislature. The second section explains the U.K. constitutional rules designed to prevent the executive from ratifying an international treaty, and hence committing the United Kingdom at the international level, before Parliament has had the opportunity to consider the treaty. This area is interesting, since it reveals a shift from practice, to a convention, and then to a statutory obligation. The third part investigates the limits of dualism, connoting in this respect that the doctrinal rules explicated here apply to formal treaties, but do not cover all global regulatory rules, which can impact, de jure or de facto, on the United Kingdom. The focus in the second section of the chapter shifts to the constitutional constraints that limit the national applicability of a treaty regime that the United Kingdom has ratified. Parliament may impose constraints on delegation, which condition the legal reception in U.K. law of changes made by an international organization. There are, in addition, constitutional constraints fashioned by the courts, which can affect the acceptance of rules or decisions made by an international organization, to which the United Kingdom is a party, within the U.K. legal order, more especially where U.K. courts feel that such a rule of decision can impact adversely on U.K. constitutional identity. These judicially created constraints can be interpretive or substantive. The final part of the chapter is concerned with disengagement from international institutions. The relevant legal precepts are, to a certain degree, symmetrical with those that govern initial engagement. The basic starting point is that the executive, acting pursuant to prerogative power, negotiates withdrawal or disengagement from an international organization, and Parliament then enacts or repeals the requisite legislation to make this a legal reality in national law. Matters can, however, be more complex, as exemplified by the litigation concerning the United Kingdom’s exit from the European Union.


Author(s):  
Alma-Pierre Bonnet

The decision by the United Kingdom to leave the European Union came as a shock to many. A key player during the referendum campaign was the Vote Leave organisation which managed to convince people that they would be better off outside the European project. Their success was made all the easier as Euroscepticism had been running deep in the country for decades. It is on this fertile ground that Vote Leavers drew to persuade people of the necessity to leave. Using critical metaphor analysis, this paper examines the way Vote Leavers won the argument by developing three political myths, which, once combined, conjured up the notion of British grandeur. Drawing on Jonathan Charteris-Black’s seminal works on the relation between metaphors and the creation of political myths in political rhetoric, this paper posits that the Brexit debate was not won solely on political ground and that the manipulative power of metaphors may have also been a key element. This might explain the current political deadlock, as political solutions might not provide the answers to the questions raised during the campaign.


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