Eurozone needs ‘hard laws’ for credible resolution, economist argues

Eurozone countries need to adopt a "hard law" to make sure that member states abide by their commitments under the currency area's banking resolution regime, a European economist argues.

Cooperation between national governments "based on soft law may break down at times of crisis, as witnessed during the Great Financial Crisis", argues Dirk Schoenmaker, a professor of banking and finance at Erasmus University in Rotterdam. But this is "still the prevailing governance approach" adopted by the