I think that the bail-in principles approved by the Member States and the respective timeline until 2018 are appropriate to allow a transition period that is helpful to ensure stability in the bank bond market. This new rules should support the work of the SSM by strengthening incentives in the financial sector to exercise market discipline on problematic banks.
To sum up, the euro area banking sector is becoming more stable overall, and given the euro area’s central role in global financial intermediation, this creates positive spillovers for the global economy. Banking Union will take this process forward by increasing confidence in supervision and ensuring that banks that need to be wound down, can be.