Another episode of the crisis started to unfold in May 2010 when market concerns about the sustainability of public finances in some euro area countries grew in view of rapidly rising government debt-to-GDP ratios and increasing contingent liabilities. Bond markets in these euro area countries became severely dysfunctional.
Given the institutional complexity of the new mechanism, the particularly tight deadlines for its construction, and the differences in national supervisory practices, the results to date are positive. The new supervisory system’s operating rules have been finalized, the decisionmaking mechanisms are being fine-tuned, and the 2015 supervisory programme, agreed in common for the first time, is being implemented.