Objectives
The Banking Union was designed to break the vicious circle between banks and sovereigns, restore financial stability, and deepen the integration of the single market in financial services.While significant progress has been achieved
– notably with the creation of the Single Supervisory Mechanism (SSM) and the Single Resolution Mechanism (SRM)
– the project remains incomplete.
The persistence of national ring-fencing measures, the absence of a European Deposit Insurance Scheme (EDIS) and the lack of fully integrated cross-border banking groups continue to expose structural vulnerabilities. These gaps are not merely technical