It will contribute to breaking the vicious bank-sovereign nexus and minimize the risk of supervisory forbearance in the absence of workable resolution options. The European Commission will present a proposal in the course of the year. As you can see Europe has responded decisively to the challenges. Member states have progressed individually in rebalancing their economies and in common in strengthening the union’s institutions.
Notwithstanding the achievements made, no time should be wasted in complacency. Continued policy actions are necessary to sustain confidence and revive the growth potential of euro area countries. The imperative is to further reduce fiscal and structural imbalances as well as to advance with financial sector restructuring and with European institution building.