The 2010 sovereign crisis in the euro area brought to light the depth of the monetary union’s structural weaknesses. In particular, it highlighted the dangers of the sovereign-bank nexus – the amplification effect resulting from sovereign debt being held primarily by domestic banks. In response, important changes have been put in place. From a crisis management perspective, new institutions were created, such as the European Stability Mechanism which acts as a lender of last resort for euro area countries in difficulties. From an ex ante perspective, the crisis led to the launch of the banking union, which comprises the Single Resolution Mechanism – including the Single Resolution Fund – and the still-pending European Deposit Insurance Scheme. [...]