It must be emphasised however that OBR is just one tool in the resolution toolbox. The government may or may not implement OBR when dealing with a bank failure; the choice will depend on a number of factors. But it is important for government to have this option available.
When Germany became a co-founder of European Monetary Union, it did so from a very particular situation. In contrast to many of today’s euro-area states, we enjoyed a high degree of price stability. We had, however, a weak spot in not fully meeting the fiscal convergence criteria due to the high costs of German reunification.