Though the primary argument for this was to contain systemic risk, in practice this dispensation has resulted in increasing systemic risk given the  6  BIS Review 138/2009  incentive structure for pushing the funding markets to more and shorter term. There is need to reflect on how to involve these creditors in burden sharing in the event of failure of an institution.
This not only holds for the Stability and Growth Pact and the Macroeconomic Imbalances Procedure, but also for macro prudential policies and the Asset Quality Review of bank balance sheets. Should any problems in the application arise, European policymakers will need to continue to forcefully tackle them. This enables us to keep the monetary union stable also in the long run.