Getting the design of the banking union right is a precondition for success  The key components of a banking union, then, are common supervision and a common restructuring and resolution mechanism. They would help to loosen the close interconnectedness between the banking system and public finances. However, the actual design of a banking union is crucial.
A number of points have to be borne in mind in this respect. •  First, the banking union should not overshoot the mark with regard to the Europeanisation of competences. National responsibility can remain in place whenever risks can be borne at the national level and no risks exist for the taxpayers in other member states.