Recent calls to form a sort of European FDIC (a version of the American Federal Deposit Insurance Corporation), merging the Single Resolution Fund (SRF) and EDIS into one single entity, 9 are welcome in this regard, provided that the legal framework is fixed and that financial stability – both at European level as well as at national level – is enshrined as the first and fundamental objective of any intervention.
In fact, the establishment of Banking Union was inspired by the American FDIC. However, it fell short of providing the SRF or EDIS with right instruments and means to guarantee financial stability. For this to happen, a clear definition of what constitutes public interest and critical functions is required.