It puts us in a stronger position to defend European financial stability, which in turn will support the proper transmission of our monetary policy and price stability. And let me be clear: this will not be achieved by mutualising risks. On the contrary, banking union reduces risks for taxpayers.
Having a European supervisor ensures that all banks in the euro area will be kept in check by the same rules and under reciprocal oversight. It therefore limits the likelihood of financial crises and contagion, which is ultimately what leads to countries needing financial assistance.