This paper discusses the impact of deregulation and market integration policies on the structure of European banking markets. The paper argues that whether European integration will lead to an increased exploitation of scale advantages, or not, will depend on the extent to which competition in...

This paper assesses the effectiveness of vertical industrial policies within the European Union. Vertical industrial policy is defined as government support of specific firms or industries ('picking winners' or 'supporting losers'). It is measured as state aid granted by Member States to the...

This report argues in favour of an economics-based approach to Article 82, in a way similar to the reform of Article 81 and merger control. In particular, we support an effects-based rather than a form-based approach to competition policy. Such an approach focuses on the presence of...

This paper examines the characteristics of the financial system that tend to accentuate the economy's cyclical fluctuations and, on occasion, end up causing asset bubbles and financial crises, like the one that started in 2007 with the US subprime mortgages. The paper discusses, first, some...

Given the extreme uncertainty surrounding financial markets, there are strong efficiency reasons to justify the use public funds for guarantee schemes and precautionary recapitalisations of fundamentally sound financial institutions. The former tackle the severe asymmetric information problems...

This paper provides a critical analysis of some of the key features of merger policy as understood and practiced in leading jurisdictions such as the European Community and the United States. It focuses first on a discussion of the gradual move of merger policy towards the examination of...

This paper assesses the integration strategy of the European Union in regulated network markets. The paper argues that in these markets integration should not be an end in itself. In regulated markets the conventional gains from trade or freedom of establishment may be outweighed by significant...