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In his view, the most significant change taking place is the development of Banking Union. Monetary Union needs Banking Union, not least because a stable banking sector is an essential complement to a sound money. He therefore sees the project of building Banking Union as the most important integration step since the launch of the euro.
What Mr Mersch has tried to illustrate is that a regime change involves two components. First, the right rules and institutions to ensure a single system. Second, a willingness to use those rules and institutions in a stricter manner. It is therefore a question not only of mechanisms, but also of mindsets.
Already some encouraging progress has been made, in particular on the SSM. But there is still a long way to go, and success is only possible with a cooperative effort. Whether Banking Union achieves a regime change will ultimately depend on the cooperation and dedication of literally thousands of legislators, regulators and supervisors. It is the very definition of a “team effort”.
In the same vein, there is the need to strengthen joint training efforts in supervision skills. The European Supervisor Education initiative is an example of a common cross-border approach which could be built upon.
Mr Mersch concluded by saying: “Yet in my view Banking Union is the challenge of our times. The crisis has presented us with a once-in-a-generation opportunity: to build a safer banking sector; to strengthen our Monetary Union; and in the process to take forward the historical process of European integration. We are privileged to have this opportunity – and we need to take it.”