Mr. Paul Gallagher:

Well, I ... a rationale wasn't articulated, I understood it and I think those in the room understood it, Chairman, that under the treaty, the ECB is forbidden to bail out any banks and the European institutions are forbidden to do so, and you may remember the controversy that arose when the ESM was introduced in 2010, and subsequently when the ESM was introduced, the present ESM, sorry, EFSM under 2010 and the ESM following the amendment to the treaties in 2013 and there was a challenge before the European Court on the basis it was said, "this is monetary financing and cannot be done". The European Court rejected that but the one thing the ECB could not do is bail out the banks and the provisions of the treaty were interpreted, actually as preventing other member states doing so. There was a change in perspective and further legal solutions were sought in 2010, precipitated by the Greek financial ... sovereign debt crisis.