The link between the financial system and the sovereign was absent from the Maastricht context and the “no bailout” clause meant that no Member State could expect the Union to bail it out, while respecting the monetary financing prohibition.
To face the huge challenges posed by the crisis it became clear that decisive and urgent action had to be taken to ensure stronger economic governance, better coordination of Member States’ policies and a sounder financial sector. Far-reaching improvements were introduced into the regulatory and institutional framework, the economic coordination and surveillance procedures (e.g.