Certainly, any costs incurred from resolution should first and foremost be covered by the private sector, through establishing a European Resolution Fund raised by levies on the banking sector. But a real financial market union must also contain a public sector dimension at the European level.
As international investors' appetite for risk evaporated, the flow of capital shifted away from countries that had historically been viewed as more vulnerable, including some emerging Asian and Latin American economies, even though many of these countries appeared to be much better positioned to weather an economic crisis than in the past.