The Reinvention of Development Banking in the European Union: Industrial Policy in the Single Market and the Emergence of a Field
The Reinvention of Development Banking in the European Union: Industrial Policy in the Single Market and the Emergence of a Field
Professor of International Political Economy
Associate Professor of European Public Policy
Cite
Abstract
National development banks (NDBs) have transformed from outdated relics of national industrial policy to central pillars of the European Union’s economic project. This trend, which accelerated after the Financial Crisis of 2007, has led to a proliferation of NDBs with an expanded size and scope. However, it is surprising that the EU—which has championed market-oriented governance and strict competition policy—has actually advocated an expansion of NDBs. This book therefore asks, why has the EU supported an increased role for NDBs, and how can we understand the dynamics between NDBs and European incentives and constraints? In order to answer these questions, this book analyzes the formation and evolution of a field of development banking within the EU. We identify a new field around an innovative conceptualization of state-backed financing for the purposes of policy implementation. However, rather than focusing solely on national development banks, we instead broaden the focus to the entire ecosystem of the field of development banking, which includes political institutions (both in Brussels and in the Member States), financing vehicles (such as the Juncker Plan), regulatory bodies (DG Competition, DG ECFIN), and commercial actors. Seven in-depth case studies on European NDBs, along with three chapters on European-level actors, detail this field of development banking, and answer the questions of when, where, and how development banking occurs within the EU. We conclude that the EU has supported the expansion of NDBs as a means to support a European-wide industrial policy without creating new financial obligations, and that the European dynamics have differentially impacted Member States’ NDBs leading to a fragmented and asymmetrical field.
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Front Matter
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1
Introduction: The Making of the European Field of Development Banking
Daniel Mertens and others
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Section I Development Banking and European Governance
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2
United in Diversity? Interests, Preferences, and Patterns of Engagement of Public Development Banks in the Implementation of the EU Budget
Eulalia Rubio andMatthias Thiemann
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3
State Aid and National Development Banks in the EU
Peter Volberding
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4
Leveraging Policy Steer? Industrial Policy, Risk-Sharing, and the European Investment Bank
Stephany Griffith-Jones andNatalya Naqvi
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2
United in Diversity? Interests, Preferences, and Patterns of Engagement of Public Development Banks in the Implementation of the EU Budget
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Section II The Many Faces of Development Banking in the EU
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5
A German Model? KfW, Field Dynamics, and the Europeanization of “Promotional” Banking
Daniel Mertens
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6
Privatization, Crisis, and the Transformation of Cassa Depositi e Prestiti
Fabio Bulfone andDonato Di Carlo
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7
The Rise of Bpifrance: The Rebirth of a Dirigiste State?
Matthias Thiemann andPeter Volberding
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8
Is a European “Hidden Investment State” Emerging in Spain? The Role of Instituto de Crédito Oficial
Clifton Judith and others
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9
Managing the Contradictions of Development Finance in the EU’s Eastern Periphery: Development Banks in Hungary and Poland
Dóra Piroska andKatalin Mérő
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10
Development Finance in the Baltic States and the Process of Europeanization
Olga Mikheeva andEgert Juuse
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11
The Rise, Fall, and Return of Promotional Banking in Greece
Jens Bastian
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12
Conclusion: Development Banking and the Future of European Capitalism
Daniel Mertens and others
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5
A German Model? KfW, Field Dynamics, and the Europeanization of “Promotional” Banking
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End Matter
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