This paper examines the unfinished agenda of the governance structure for financial regulation and supervision in Europe. In this unfinished agenda, there are two opposite forces at play: one that fosters greater centralization and another one that promotes decentralization with co-operation. I try to cast some light on this debate by arguing that a single market with a single currency does need some common rules, but does not require a single supervisor. I also argue that the possible centralization of one function (lender of last resort) does not imply nor require the centralization of other supervisory functions.
Financial Markets Group Special Papers SP 149