The case for a Financial Sector Stabilisation Fund

A Financial Sector Stabilisation Fund would constitute a useful instrument for more orderly crisis management. It should be understood as one element in a whole range of instruments. The fund should primarily be funded by a levy on the financial industry; the levy should be reasonable in size and risk-based, recognising the risk profile of an institution. The state should make a contribution, too. Preferably, the fund should be established at the EU level. An EU-level fund would need a target size of around €140 - 160bn.