EU capital markets have changed radically over the past 20 years. In the 1980s, countries had their own financial industries and rules. Now there is one 'Champions League' of banks, and member states have transferred crucial regulatory powers to Brussels. Drawing on policy documents and more than fifty in-depth interviews, Widen the Market, Narrow the Competition argues that financial industry interests have been key to this power shift. Continental banks initially feared a single European market, and governments followed their protectionist impulses. In the 1990s the mood changed, and the likes of ABN AMRO and Deutsche Bank rushed into international investment banking. They emerged as the crucial lobby for the supranational governance in place today. Linked by the interests of centrally placed firms, EU financial integration and supranational governance have been two sides of the same coin. At the same time, national parliaments and ordinary citizens have been pushed to the sidelines.
Since August 2008, Daniel M?gge has been assistant professor in International Relations and International Political Economy at the University of Amsterdam.
contents List of Figures and Tables viii Chapter One: Introduction Established Approaches and their Limits The Argument: Banker Interests in EU Capital Markets Chapter Two: Competition Politics and Supranational Integration European Integration Financial Market Liberalisation and Regulation Private and Public Actors in Regulatory Policy The Competition Politics Approach The Core Features of the Approach Chapter Three: The Domestic Roots of Regulatory Reform European Capital Markets at the End of the 1980s Regulatory Reform in German Managed Capitalism Regulatory Reform in French State-led Capitalism Regulatory Reform in British Market Capitalism European State-market Condominiums in Comparison Chapter Four: Negotiating the Single Market Financial Services in the Single Market Project Negotiating a European Market in Investment Services Competitive Fault Lines and Intergovernmental Politics Chapter Five: The 1990s' Capital Market Revolution in Europe Measuring Change in EU Investment Banking Markets Market Concentration as a Source of Economic and Political Power The Rise of Capital Markets and Investment Banking in Europe Explaining Internationalisation European Bourses: From Members-only Clubs to Profi t-Seeking Firms Chapter Six: The Re-launch of Financial Market Integration Shifting Industry Preferences in the 1990s The Emergence of EU-level Lobbying EU Action and Industry-Commission Contacts Ahead of the FSAP The FSAP, the ISD and the Forum Groups Chapter Seven: The Emergence of Supranational Governance Supranational Cooperation before Lamfalussy viii widen the market, narrow the competition Launching Institutional Change Negotiating Lamfalussy Supranational Governance in Practice Industry Interests and Institutional Reform Chapter Eight: Renegotiating the ISD in the Supranational Constellation European Lobbying Transformed Lamfalussy in Action: Renegotiating the ISD Clearing and Settlement: the Persistence of National Competition Politics The supranational constellation in EU capital market governance Chapter Nine: Conclusion Banker Interests in EU Capital Market Integration EU Capital Market Governance and The Crisis Governing Finance in the Interest of All? Appendices Overview of the International Expansion of European Banks References List of Interviews Index