The third part, the banking union, is not yet complete. The current plan consists of three pillars: 1. Single Supervisory Mechanism (SSM)  2. Single Resolution Mechanism (SRM)  3. Harmonized deposit guarantee schemes (DGS)  The setting-up of the Single Supervisory Mechanism is progressing.
Two months ago the informal Ecofin Council in Dublin reached a political agreement over the single supervisory mechanism for banks. The SSM should be fully operational one year later. The next step is to agree on the Single Resolution Mechanism and the bail-in rules. It is also important to get the details right. Like monetary policy, a successful bank resolution mechanism relies on credibility.