The Commission’s proposal by mid2011, as envisaged, would provide the European Parliament and the Council with sufficient time to put the new framework in place by the end of 2012. The ECB Annual Report highlights our support to the Commission’s initiative regarding a crisis management and resolution framework for EU financial institutions.
Some fraction of the additional debt would likely be financed abroad, which would lessen the negative influence on domestic investment; however, the necessity of paying interest on the foreign-held debt would leave a smaller portion of our nation's future output available for domestic consumption.