Beyond financial repression and regulatory capture: the recomposition of European financial ecosystems after the crisis


The financial crisis has radically and rapidly changed the political economy of the European financial system. This paper argues that the relationship between governments and financial systems in Europe cannot be reduced to the polar notions of “capture” and “repression”, but that the channels of pressure and influence between governments and their financial systems have often been two-way. Secondly, it puts these issues in a historical perspective and shows that the current reconfiguration of national financial systems in Europe is not simply a return to the “interventionist” policies of the past, although it is influenced by the path-dependency of national institutions and characterised by a broader political and economic role for public bodies (public credit institutions, financial supervision agencies, central bank, European relief fund, etc.).

Actes de la Recherche en Sciences Sociales, 2019/4, n. 229, pp 14-33. Earlier version published as LSE ‘Europe in Question’ Discussion Paper No. 147/2019, and Bruegel Working Paper, 2014-08