*** Here I think it is worth acknowledging that the ECB and Eurosystem have stepped up to the mark and provided ample liquidity to the Irish banking system in a period of extraordinary liquidity pressure, thereby dramatically reducing risk.
Yet, many coordination efforts for the sound functioning of the monetary union necessarily carry fiscal implications at the EMU level and involve the possibility of intercountry transfers. Examples are uniform deposit insurance and resolution mechanisms within a banking union, euro-level stabilization funds for times of crisis, support for countries affected by negative shocks, and the euro bond initiative.