  Second, the banking union on its own is not the key to better separating the risks of banks and governments. We must also make further progress in regulation and put an end to the preferential treatment afforded to government debt instruments.   Third, earlier reforms of the financial markets in Europe have focused on the banks.
It should not be overlooked here that the integration of the markets for capital can make an important contribution to sharing opportunities and risks in monetary union. I would now like to proceed by discussing how the banking union can contribute to better identifying and handling risks.