(THREAD) Mario Draghi is speaking at #SoU2018 about how well-designed risk-sharing in the euro area would make our financial system and monetary union safer. Click on this thread to find out more or read the full speech ecb.europa.eu/press/key/date… 1/ 
Mario Draghi: We need a fiscal backstop to European banking resolution. This will create confidence that resolution can always be enacted efficiently. The aim is not to bail banks out – borrowed funds are repaid by the private sector. #SoU2018 2/
Mario Draghi: The dichotomy between risk-sharing and risk-reduction is, in many ways, artificial. With the right policy framework, these two goals are mutually reinforcing. #SoU2018 3/
Mario Draghi: Deepening private risk-sharing in the euro area would be beneficial for macroeconomic stability. But it does not happen by itself. Rather, it has to be enabled by public sector policies at national and EU level. #SoU2018 4/
Mario Draghi: We need an additional fiscal instrument to maintain economic convergence during crises and to avoid overburdening monetary policy. Its aim would be to provide an extra layer of stabilisation, thereby reinforcing confidence in national policies. #SoU2018 5/
Mario Draghi: A European deposit insurance scheme would further reduce the risk of bank runs in the euro area. #SoU2018 6/
What is a deposit guarantee scheme? Read our explainer to find out more ecb.europa.eu/explainers/tel… #SoU2018 7/7
