We all want banks that are well supervised and that can be resolved at minimum cost to the taxpayer. To achieve this, I think we need not reinvent the wheel. There are elements of the US approach that have worked and that we can usefully borrow in Europe.
Ad hoc fiscal reinsurance I see the historic nature of the EU response not in the sheer size of EU spending – which is indeed unprecedented –but rather in the organisation of governance in Europe. For the first time in its history, the EU is taking on common debt to help finance a recovery.