A key element of the reform of the governance of the European Monetary Union (EMU) currently being discussed is the prevention and management of sovereign debt crises. While there is wide agreement on the need to enhance market discipline and to strengthen the role of the European Stability Mechanism (ESM), views widely diverge on the policies and instruments to achieve them.

The global financial crisis triggered substantial changes in the US and the European bank resolution frameworks, aiming at enhancing financial stability, making the financial system more resilient and reducing the taxpayer involvement in case of crises. An important component is that of the rules and instruments for the resolution of banking crises. With respect to this, the solutions adopted by the European and the US legislator differ in some non secondary aspects.