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ViewpointJanuary 4 2016

What will it take to turn European banking union rhetoric into reality?

The formation of a European banking union should have helped ease Greece's economic woes, but far from putting European banks on an even footing, the so-called union left Greece out in the cold, writes former Greek finance minister Yanis Varoufakis.
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What will it take to turn European banking union rhetoric into reality?

The 2007/08 banking crisis weighed heavily on public finances in Europe and the US. However, only in the eurozone have the banking sector’s woes continued to fuel a debt-deflationary spiral.

The European banking union, announced in 2014 amid considerable fanfare, was meant to end the mutual reinforcement of the banking and public debt crises. Unfortunately, it has not.

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