This brings me to a second mindset I frequently encounter when discussing the future of the banking union. It concerns the idea of a trade-off between crisis mitigation and crisis prevention measures.
Essentially, some interpret the ongoing risks for the euro area as a sign that we are approaching a stalemate situation, where self-recovery potentials in the financial system will be exhausted – as will options for action. In this situation, the reasoning goes, would it not be better to compromise on short-term oriented “flexible” measures – however counterproductive in the medium and long term?