The ESM's direct banking recapitalisation: Looking forward in backstop-questions

It is unlikey that direct ESM-recapitalisation will be used to solve the problems in southern European banks balance sheets in the short term. For the period starting from 2016, the design of the direct recapitalisation is convincing. cep pleads for cautiously further developing the banking union’s backstops and to allow financial assistance by the ESM to resolution funds, given that national backstop have been activated priorly.