All the new countries have also  BIS Review 13/2005  1  been very closely associated with the history of “core Europe". This question will of course be even more valid for future enlargements.
If the European Stability Mechanism – an institution that can provide financial assistance to euro area Member States in order to safeguard the stability of the euro area as a whole – could inject capital directly into banks, this would also help to break the bank-sovereign loop. Of course, such support must come with strong conditionality and control.