Now, there have been a number of improvements at the institutional level since the crisis erupted. The ESM can grant conditional financial aid to member states in the event of a crisis and thus prevent a national crisis from jeopardising the stability of the entire euro area financial system. Another step forward was the creation of the banking union.
Thus far, it is composed of a single supervisory mechanism, a single resolution mechanism, and harmonised national deposit guarantee schemes. These reforms remedied weaknesses in the architecture of the euro area that had either been ignored or overlooked when the euro was founded. These measures restored stability in the euro area – there's no doubt about that.