To lower the likelihood of difficulties in public finances, the banking union needs to be accompanied by European-level powers of fiscal policy intervention to be used if a member state persistently violates the European rules or the conditions tied to the financial assistance programmes.
The architecture of the euro area Ladies and gentlemen, the robust economic recovery in the euro area should not blind us to the 3/6  BIS central bankers' speeches  fact that the currency union remains vulnerable. In the wake of the crises, elements of mutual liability such as the European Stability Mechanism (ESM) were introduced to protect the stability of the financial system.