Minister Jeroen Dijsselbloem (Minstry of Finance) said earlier this week in the House that such a guarantee scheme are, to him, handy if the risks are reduced on bank balance sheets. Germany was also critical. Berlin fears that the German banking system will have to pay for the problems found in banks within weak eurozone countries such as Greece.
The deposit guarantee scheme is one of the three pillars of the European banking union. It will also monitor the possible resolution of banks regulated at European level.
Funds
The European Commission launched a plan to create a European deposit guarantee scheme so that account holders are assured of their savings up to 100 thousand euro if a bank falls over, on 24 November. As far as Brussels, the funds are paid from 2024 from a fund filled by European banks. Thus, the banks have to bleed themseves when things go wrong financially, rather than bleeding the taxpayer.
The plan is further elucidated by the European Commission to the finance ministers in the euro zone. Thereafter, the government sends a letter to the Chamber with the government's position. Such a guarantee should already be regulated at national level as to which savings have been secured to 100 thousand euros, as is the case in the Netherlands. But not all euro area countries have this contingency set up.