The Reinvention of Development Banking in the European Union

Daniel Mertens is Professor of International Political Economy at the University of Osnabrück. Prior to that, he was an assistant professor at Goethe University Frankfurt and a visiting scholar at Northwestern University. His work ranges from the politics of credit markets and banking to analyses of the modern tax state.Matthias Thiemann is an assistant professor for European Public Policy at Sciences Po. His work focuses on the reconfiguration of financial markets after the 2007-8 crisis, with a particular focus on shadow banking, macro-prudential regulation, and the role of development banks in stabilizing financial markets.Peter Volberding recently graduated with a PhD from the Government Department at Harvard University. His dissertation focused on the interaction between development banks, private financial markets, and development financial instruments.

• 1: Daniel Mertens, Matthias Thiemann, and Peter Volberding: Introduction: The Making of a European Field of Development Banking Section I: Development Banking and European Governance 2: Eulalia Rubio and Matthias Thiemann: United in Diversity? Interests, Preferences, and Patterns of Engagement of Public Development Banks in the Implementation of the EU Budget 3: Peter Volberding: State Aid and National Development Banks in the EU 4: Stephany Griffith-Jones and Natalya Naqvi: Leveraging Policy Steer? Industrial Policy, Risk-sharing, and the European Investment Bank Section II: The Many Faces of Development Banking in the EU 5: Daniel Mertens: A German Model? KfW, Field Dynamics and the Europeanization of 'Promotional' Banking 6: Fabio Bulfone and Donato Di Carlo: Privatization, Crisis, and the Transformation of Cassa Depositi e Prestiti 7: Matthias Thiemann and Peter Volberding: The Rise of Bpifrance: The Rebirth of a Dirigiste State? 8: Judith Clifton, Daniel Díaz Fuentes, Clara García, and Ana Lara Gómez: Is a European "Hidden Investment State" Emerging in Spain? The Role of Instituto de Crédito Oficial 9: Dóra Piroska and Katalin Mérő: Managing the Contradictions of Development Finance in the EU's Eastern Periphery: Development Banks in Hungary and Poland 10: Olga Mikheeva and Egert Juuse: Development Finance in the Baltic States and the process of Europeanisation 11: Jens Bastian: The Rise, Fall, and Return of Promotional Banking in Greece 12: Daniel Mertens, Matthias Thiemann, and Peter Volberding: Conclusion: Development Banking and the Future of European Capitalism

This timely and innovative contribution explains the new ways in which European authorities, at both national and supranational levels, seek to exploit a renewed focus on development banking to advance critical economic and political goals. The volume shows that tensions abound, strategies differ, and the fight over rules is far from settled. The authors here provide a comprehensive account of development banking's evolution in Europe, while also distilling a number of new and very surprising findings about the engines of change. The study thus explains development banking's new role and power, but also attunes us to the larger phenomenon of capitalism's transformation over time.