Member States agreed to put debt brakes in their national constitutions. Most importantly, Europe’s leaders recognised that monetary union needs to be complemented by a financial union, a fiscal union, a genuine economic union and eventually a deeper political union. Discussions are underway with clear timelines in the months ahead. The most urgent project – financial union – is now taking tangible shape.
The ECB is expected to become the single supervisor for the biggest part of the euro area’s banking sector. This is probably the most significant integration step since the Maastricht Treaty. Advances towards a common resolution framework for dealing with non-viable banks are also in the pipeline. Of course, the ECB also made a contribution in 2012, notably with our special measures.