To complete the Banking Union and break the "doom loop" between sovereign debt and the banking industry, Luis Garicano (Renew Europe, Spain) suggests acting simultaneously on the banks by introducing a more secure approach in terms of sovereign bonds investment and on the ‘resolution’ aspect of the euro area Banking Union by amending the powers of the Single Resolution Board (SRB) so that it can intervene more effectively in the event of the failure of a systemically important bank.
My...