Draghi pleads again for a guarantee of European bank deposits

For Mario Draghi, a bank deposit guarantee system is crucial for cementing the confidence of savers. But Germany is against it. She fears she will have to pay the bill in the event of a bank bankruptcy in eurozone states.

It was expected in front of MEPs on Monday. Mario Draghi, President of the European Central Bank (ECB), reiterated his call for a system of guaranteeing bank deposits in the euro zone saying that risk-sharing allowed them to reduce. According to the ECB, "such a system, dubbed EDIS by its acronym, is crucial for cementing the confidence of savers in euro-zone banks."

Eurozone leaders have not managed to an agreement on this issue at their summit last month.

♦ At issue
The opposition of Germany, which postponed the subject, as the question of a budget for the euro area.

"In the coming period, including the debate on a deposit insurance mechanism, we should not be held back by the distinction between risk reduction and risk sharing " chained Mario Draghi during his hearing before the Economic Affairs Committee of the European Parliament. [19659007] "Banks have already cleaned up their balance sheets a lot and risk-sharing would reduce them further, since this would lead to more orderly and faster resolution in crisis situations, which improves the stability of banks. 'together."
        

Germany brakes four irons on the EDIS, for fear of having to pay the bill in case of bankruptcy of a bank in states of the Eurozone as less financially responsible.

→ Mario Draghi emphasized the progress already made in this area and noted that the banks had significantly improved the quality of their equity.
He also reiterated his appeal for a strengthening of the European Stability Mechanism .