Columbia International Affairs Online: Policy Briefs

CIAO DATE: 12/2013

What if the Next Financial Crisis Hits the Banking Union? A Call for an "If All Else Fails" Clause

Stijn Verhelst

September 2013

EGMONT – The Royal Institute for International Relations


This Policy Brief argues that the envisaged design of the Banking Union risks not being sufficient to deal with the next large - scale financial crisis. Therefore, an “if all else fails” clause should be approved, stating that the Banking Union members can provide joint last resort financing to deal with a future crisis. An agreement on the clau se should be feasible because it is beneficial to all Member States.