After all, the risk of corporate failure is a core element of the market economy. Therefore, measures have to be taken to ensure that banks can fail without placing a strain on government finances. And this is where the second element of the banking union comes into play: a single resolution and restructuring mechanism for banks. And that, too, is under development at present.
Properly equipped, the banking union is thus a key component of a stable monetary union. With the banking union, government finances will be better protected in the future against crises in the banking sector. But we have to break through the vicious circle from another direction, too. We also have to protect banks from government finances running into difficulties.