The process towards completion of the capital markets union must be speeded up including − I would even say primarily − by introducing euro area sovereign bonds, which could replace a portion of national securities in circulation and play the role of safe asset assigned to sovereign bonds in all the other major economies.
This result can also be achieved with the simultaneous introduction of some form of European-wide public debt insurance, for example through the creation of a European debt redemption fund (ERF), financed by dedicated resources of the participating countries determined in a way that prevents systematic intra-country transfers.13 Banking union must be completed with a more effective mechanism for managing crises at any intermediary, including small- and medium-sized ones, and with a proper European deposit insurance scheme that guarantees equal protection for depositors, irrespective of where their bank operates.