Mastering Uncertainty after the Crisis – Paradigm Change of Eurozone Financial Regulation?

Ten years after the financial crisis in 2008, institutions of financial regulation in the Eurozone have changed. However it remains uncertain how far-reaching these changes have been. Based on a co-variational case study, this article investigates first, second and third order change of financial regulation in the post-crisis period. Following Campbell’s (2004) characterization of institutional change in empirical cases, this article firstly defines the critical dimensions of financial regulation in terms of analytical level, intensity and implementation. Secondly, this paper specifies the time frame over which change in these dimensions has occurred. Thirdly, this study uses primary sources and new expert interview data from high-level senior staff members of EU authorities and the financial industry to investigate the level of institutional change. The findings suggest that, contrary to previous research, first, second and third order change has indeed taken place. The macroprudential turn of financial regulation has changed the political discourse in the Eurozone and altered political processes, policymaking, and the functioning of the EU. At a more general level, this study shows that the study of ideas is essential to understand the dynamics of change during times of high uncertainty.