EU’s proposed deposit insurance plan opposed

Germany is opposed to a pan-European bank deposit guarantee proposed by the European Commission as a step towards closer financial integration of the euro zone, German government sources said recently.

The European Deposit Insurance Scheme is one of several reforms proposed in a report published by the Commission in cooperation with other EU bodies.

Under the Commission plan, the deposit insurance scheme would be privately funded through risk-based fees paid by participating banks in the member countries and would complement existing national bank guarantee schemes.

"From the German viewpoint, what cannot or should not be an item for deliberation in the first phase is the question of a European deposit guarantee scheme," a government source said.