Nearly 12 months ago a Euro Area Summit Statement declared that:
When an effective single supervisory mechanism is established, involving the ECB, for banks in the euro area the ESM could, following a regular decision, have the possibility to recapitalize banks directly.
Yesterday’s Eurogroup meeting examined this issue. The statement is here. The final sentence is:
The potential retroactive application of the instrument should be decided on a case-by-case basis and by mutual agreement.