Over time, enlargement extended this promise to the new democracies in southern and eastern Europe. As the continent experienced an unprecedented era of political stability, economic integration was no longer presented just as a means to that end: it was at the centre of a promise of economic prosperity and protection for European workers in times of technological change and increased global competition.
These enhancements in resolvability protect financial stability and help ensure that the shareholders and creditors of failing firms bear losses. Moreover, these steps promote market discipline, as creditors— knowing full well that they will bear losses in the event of distress—demand prudent risk-taking, thereby limiting the problem of too-big-to-fail.