Schaeuble Says Deposit-Guarantee System Isn’t Possible in EU Law
- Treaty between participating states needed for system, he says
- Germany insists on reducing bank risk before plan proceeds
Wolfgang Schaeuble, Germany's finance minister.
Photographer: Jason Alden/BloombergThis article is for subscribers only.
A proposed common deposit guarantee system isn’t possible under European Union law, and would have to be created by a treaty of participating countries, German Finance Minister Wolfgang Schaeuble said.
The deposit-guarantee plan is part of Europe’s so-called banking union, which also comprises European Central Bank supervision of euro-area banks and the Single Resolution Board housed in Brussels. Germany has resisted moving forward with the initiative until risks in the banking sector are reduced.