The principles guiding the ECB’s enforcement and sanctioning powers

This article examines the enforcement and sanctioning powers as an essential component of the wide array of powers attributed to financial supervisory authorities. It explores the powers enshrined in art. 18 TFEU also in light of the recent ECB’s “Guide to the method of setting administrative pecuniary penalties”. The analysis aims to approach the ECB’s sanctioning powers by critically applying the main tenets of optimal deterrence theory as elaborated by the law and economics literature