As recently noted by the Senior Deputy Governor of the Bank of Italy, the lack of a  common fiscal backstop ‘reflects the unwillingness of many European countries to consider  the possibility that the taxpayers of country A may pay, even temporarily, for the crisis of a bank in country B.
According to this view, banks, although now supervised and subject to resolution by European institutions, must ultimately remain a national matter.’ 4 The outcome  is that the bank-sovereign nexus, which the Banking Union was designed to counter, persists, within a complex and incomplete framework.