(01 December 2020) – The 27 finance ministers agreed on Monday that the European Stability Mechanism, the safeguard fund created in 2012 when the monetary union threatened to explode, should be able to intervene, as a last resort, in the event of a banking crisis.
Europe is definitely moving ahead. On Monday 30 November, the EU took an important step in the construction of a more complete banking union, whereas a year ago, the traditional divisions between the south and north of the continent prevented any progress.
The mission of the Single Resolution Fund (SRF) is to rescue banks in difficulty and thus prevent taxpayers’ money from being used for this purpose, as was the case ten years ago. However, this fund – endowed with 55 billion euros – cannot afford to face the fall of a big bank.
In the last resort, therefore, states would be called upon to come to the rescue. (Le Monde)