Although the no bail-out clause still applies in theory, its foundations have been eroded to some extent in practice, most notably by the European rescue packages. At the time, this communitisation of liability helped to stabilise the situation. However, joint liability can only lead to lasting stability in combination with joint control.
This is because liability and control must be aligned, either at the national or the European level, or the principle that each member state must “pay its own way” would be breached. The financial crisis also illustrates just how serious the consequences of circumventing the liability principle can be.