EU-wide bank deposit scheme: neither politically feasible nor credible
June 2, 2012 8 Comments
With the risk of a bank run in the EZ rising, there has been talk amongst EU policymakers of creating a European-wide bank deposit guarantee scheme. Over the past week, members of the European Commission and ECB president Mario Draghi have all spoken out in favour of such a scheme. This would be a form of fiscal union through the back door and therefore a step in the right direction for the EZ, but it is very unlikely to be politically feasible or credible. Read more of this post
Megan Greene is the Chief Economist at Maverick Intelligence, with a particular focus on Europe. She is also a senior fellow at the Atlantic Council, a columnist with Bloomberg and a senior research fellow at Trinity College Dublin. The opinions expressed here are her own and do not reflect those of any employers. Ms Greene offers a strictly independent voice without a political or investment agenda.
