When will the common backstop be introduced?

The common backstop was initially planned to be introduced by 1 January 2024. However, at its meeting on 30 November 2020, the Eurogroup decided to introduce the backstop in the beginning of 2022. This follows an assessment that sufficient progress has been made in reducing risks in the banking sector (see Monitoring Report on Risk Reduction Indicators, November 2020).
The criteria by which risk reduction was measured can be found in the “Term sheet on the European Stability Mechanism reform” (p.2, footnote 1).