In a fragile situation as in these days the euro area must indeed act very prudently and not overestimate its strength. Concretely, this means to take precautions that fragmentation does not return. Banking Union One very important precaution is currently in the making: The Banking Union. It will encompass the euro area as well as other EU Member States that may wish to participate.
In our opinion, two elements of the Banking Union are key: a Single Supervisory Mechanism (SSM) and a Single Resolution Mechanism (SRM). Both elements will be discussed in more depth in two of the panel discussions later on.