The Commission aims at uniting all the national guaranty finds into one by 2024.
The Commission asked Belgium, Cyprus, Estonia, Greece, Italy, Luxemburg, Poland, Rumania, Latvia and Sweden to fully adhere to its' directive for the savings guarantee systems which aims at creating a safer and healthier banking system.
According to the Commission, the directive will ensure that the investors will benefit from swifter cashing as well as a stronger protective web. The unified funding facilities will secure the guarantee systems, as they will be pre-funded and ready to fulfill their obligations towards the investors much more efficiently.
The Commission clarified that the deadline for the legislation for that directive was the 3 of July 2015. If the countries fail to adhere within the next two months the Commission retains the right to take them to the European Courts.
Germany disagrees
The German government strongly opposes the European plans as it fears that this is an “effort to spread the risks of the banks of the South to the German taxpayers”. Germany has declared that it is ready to take the case to the courts as well.
The spokesman for A.Merkel said on Monday that “The German government has clarified its opposition to a European System for the guaranty of savings accounts” while he added that “during deliberations over the pre-plan the German government repeated its position and it will continue to do so”.
Right after the ECOFIN on Tuesday the German FinMin, V.Schauble pointed that Germany is willing to go to court while he added: “let's start being cautious about the risks and lets be careful concerning agreements to spread the risk”.