Such difficulties are further hindered by the absence of decision-making mechanisms at European level which may ensure the agility, swiftness and confidentiality indispensable for an effective banking resolution function. The current situation poses significant challenges that require urgent reflection and action at European level; otherwise, the growing negative perception regarding the European project may deteriorate further.
The asymmetry between powers and accountability and the limited vision arising from the fragmentation of responsibilities and the absence of a consistent sectoral policy at European level give rise to perverse incentives. If these are not adjusted in due time, they may jeopardise the sustainability of the Banking Union itself and the objectives underlying its creation.