Regulatory initiatives range from introducing a capital surcharge to placing limits on bank size, implementing a full structural separation of investment and commercial banking, and enhancing banking competition (see Haldane, AG, 2012, On being the right size). 7  Alessandri P, Haldane AG, Banking on the State, September 2009. 8  Haldane AG, Rethinking the Financial Network, April 2009.
One promising measure would be to strengthen the role of the European Stability Mechanism, ESM for short. Thus far, the ESM has been tasked with providing financial assistance to euro area countries experiencing or threatened by severe financing problems. However, if member states retain their fiscal autonomy, the sustainability of public finances will need further safeguards beyond rules alone.