Ultimately, the incomplete set-up of the Banking Union and the full implementation of the resolution regime are a dangerous combination. One that calls for a comprehensive rethinking of the existing framework of safety nets6 – especially when monetary and fiscal policy have limited room for manoeuvre.
As often in the past in the case of the European project, now, in the current context, bold decisions are more needed than ever. The completion of Banking Union is in many aspects a way to restore European citizens’ confidence in the European institutions, build the necessary trust between Member States and address the rise of Euroscepticism.