On the financial front, starting with the subprime mortgage problem in the U.S. housing market, the global financial crisis broke out in the autumn of 2008, triggered by the failure of Lehman Brothers. Hand in hand with that, the global economy deteriorated rapidly and significantly. Since the spring of 2009, the global economy has been emerging from such plunge.
A draft directive for the recovery and resolution of credit institutions has now been presented at the EU level. This proposal clearly sets forth the sequence of liability for failing financial institutions – shareholders and creditors are now first in line, and rightly so. So we’re on track to reassert the no bail-out principle in the financial sector.