At the moment there is no appetite for a fully-fledged political and fiscal union. However, there are important steps that we can take in order to enhance the functioning of EMU. In the financial sector, it is a priority to complete the Banking Union by creating the European Deposit Insurance Scheme (EDIS), and the Capital Markets Union (CMU).
The completion of the Banking Union will improve the stability of the banking sector by cutting the still strong banksovereign link. More developed and integrated capital and banking markets will improve the financing of the real economy by diversifying the sources of financing, and will facilitate private risk-sharing through the capital and credit channels.