The Missing Pillar of the Banking Union: German Scepticism and the European Deposits Insurance Scheme
The Missing Pillar of the Banking Union: German Scepticism and the European Deposits Insurance Scheme

Author(s): Sebastian Płóciennik
Subject(s): Supranational / Global Economy, Governance, Economic policy, Financial Markets
Published by: PISM Polski Instytut Spraw Międzynarodowych
Keywords: Banking union; European Union; Germany; scepticism; deposit insurance; pillars of banking sector; financial transfer mechanism; eurozone;
Summary/Abstract: Negotiations on the creation of common bank deposit insurance for the EU have been underway for more than three years. The deadlock is mainly due to Germany’s reluctance, afraid of the creation of a new financial transfer mechanism at the expense of its own economy. An opportunity for compromise is the December Euro Summit. If an agreement is reached, it would mean the finalisation of the banking union—a key area for the future of the eurozone.

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