This Memorandum of Understanding covers crisis prevention, management and resolution. Importantly, at the national level, stability frameworks should develop institutional mechanisms that ensure the ex-ante compatibility between microprudential and financial stability objectives. While there has been significant progress in setting standards (e.g., via the CRD), there is no agreement yet on a common set of procedures for early action.
The NRRP does not cover all the interventions needed or Italy’s financial commitment; it is flanked by other significant reforms to be implemented, such as that of the tax system, and resources allocated by the national budget to spending programmes with similar objectives.