Integration within the European financial sector increased until 2007, but has since the onset of the financial crisis been decreasing. Like the other EU member states, Denmark has an interest in a well-functioning single financial market. I see merit in the current discussions on the establishment of a banking union as a mechanism for supporting financial integration in the EU.
Developing the individual elements of a banking union will be a huge task. If the vision is to be realised, the banking union must comprise at least three elements: (1) a single supervisory mechanism, (2) a single resolution mechanism for failing banks, and (3) a single deposit guarantee scheme.