Over the last few years, the European institutions and the Council have endeavoured to find a compromise solution in order to complete the consolidation of the banking sector. However, their attempts have not so far proved satisfactory, as the third pillar of their strategy, namely the European Deposit Insurance Scheme (EDIS), cannot be completed.

The prolonged delay is in itself a problem, as large systemic banks are exacerbating the lack of security of the holders of bank deposits, either due to mismanagement (in the case of Germany) or due to exposure to non-performing loans (in the case of Italy and Greece). In addition, the impasse that the Union has reached as a result of the disagreement about EDIS is stymying any attempt to find an alternative solution.

In practice, the problem of deposit guarantees could be solved by simply transferring responsibility to the European Central Bank, which has access to ‘unlimited liquidity’ and could perform the role of EDIS.
Will the Commission say:
— What stage have negotiations reached on the completion of EDIS?
— Are alternative forms of deposit guarantee being considered in case of a failure to reach an agreement on EDIS?
— How would the Commission view the possibility of a deposit guarantee being provided directly by the ECB?