Explaining national preferences on the new European banking policy framework: the case of Lithuania

Utilising the Lithuanian case, this article analyses what determines a country’s position on the transfer of national competency over banking policy to the EU level. In contrast to dominant explanations in scholarly literature, this article argues that Lithuania’s support for the banking union can be explained by the general pro-European orientation of the political system in the context of ambiguous aggregate economic costs and the benefits of the new institutional framework. In 2013, the EU Presidency also positively affected Lithuania’s stance. Finally, the decision about when to join the banking union was subordinated to the process of euro accession.