Ashley Jolin, University of Utah
Social and Behavioral Sciences
This paper analyzes the essentiality of creating a just European Union banking union between member states of the eurozone, in response to the European debt crisis. In 1992, the Maastricht Treaty established strict financial criteria for member states to follow, ensuring a strong economic environment to support the new currency union. However, numerous member states did not abide by these limits, and countries with weaker economic stability such as Greece and Ireland began to accumulate huge public deficits. As a response to this debt crisis, in June 2012 the key institutions and leaders of the EU proposed working towards a genuine Economic and Monetary Union, a banking union serving as the keystone of this project. I argue it is imperative that this banking union is designed to be successful at dissolving the current economic crisis and anticipating future problems, as the existence of the eurozone is contingent upon it.