Just a few days ago the IMF once again called on European governments to tackle structural problems on the labor market through, in its words, “a consistent and coherent set of labor market reforms.” These problems “head the list of remaining structural priorities.” Especially in Germany, the issues involved are - among others •  the degree of job security  •  the type, amount and duration of unemployment benefits  •  the wage formation process and wage differentiation  •  the amount of non-wage labor costs and, by extension, social security reform.
This will prevent supervisors from handling their banks with kid-gloves out of national interest. As you can see, we have come to expect a lot from European banking supervision. And in 2016, the Single Supervisory Mechanism will be supplemented by a European resolution mechanism for banks.