What’s more, a Single Resolution Mechanism is essential to ensure that the SSM’s supervisory decisions for resolution can be followed up with action, without reinforcing the vicious link between banks and sovereigns. Finally, a Single Resolution Mechanism will credibly pursue the least-cost resolution strategy from a euro area perspective, also taking into account cross-border spill-overs.
The euro exchange rate is beginning to recover; the extent of the recovery will depend mainly on the convergence of growth rates on either side of the Atlantic and continuing consolidation of the European economies.