The joint statement of the German, Finnish and Dutch Ministers for Finance can be read here. It includes this section on ESM bank recapitalisation.
Regarding longer term issues, we discussed basic principles for enabling direct ESM bank recapitalisation, which can only take place once the single supervisory mechanism is established and its effectiveness has been determined. Principles that should be incorporated in design of the instrument for direct recapitalization include:
- direct recapitalisation decisions need to be taken by a regular decision of the ESM to be accompanied with a MoU;
- the ESM can take direct responsibility of problems that occur under the new supervision, but legacy assets should be under the responsibility of national authorities;
- the recapitalisation should always occur using estimated real economic values;
- direct bank recapitalisation by the ESM should take place based on an approach that adheres to the basic order of first using private capital, then national public capital and only as a last resort the ESM.
This is not EU policy and there does appear to be some contradictions with the June 29th Euro Area Summit Statement but it does give some important interpretations about how that statement could be implemented.