Fresh momentum for Deposit Insurance Scheme (EDIS): protecting citizens' savings

EDIS Rapporteur, Esther de Lange MEP, has welcomed the publication of the European Commission’s Communication on completing the Banking Union. The Communication sets out a new, possible way forward for the finalisation of a European Deposit Insurance Scheme (EDIS). “The Commission Communication provides new, useful perspectives and provides the necessary momentum to move forward. It appears to be written with a clear goal in mind: to break the deadlock in Council and Parliament with a more proportionate approach while at the same time continuing the important work to complete the Banking Union and protect citizens’ savings, regardless of where they live within the Euro area”, Esther de Lange stated.

With the Commission proposal on EDIS published at the end of 2015 and the Rapporteur’s Draft Report published shortly after the publication of the Commission’s Effects Analysis in the autumn of 2016, the file has been on the desk of co-legislators for some time now. Esther de Lange continued: “Progress on this sensitive file has proven to be difficult. Whereas in Parliament, we have started political work, the Council has only discussed the Commission proposal on a technical level. With this new Communication we believe there is fresh momentum for Parliament and Council to continue their work.”

The EPP Group is of the strong conviction that we need to complete our Banking Union and break the bank-sovereign nexus. At the same time, the EPP Group has conditions that simply need to be met in order to reduce risks in the Member States and their banking sectors - also much to the benefit of citizens. Esther de Lange added: “I very much welcome the fact that the Commission has taken up my approach which emphasises the need for prior risk reduction as a precondition for the sharing of losses. This remains a highly sensitive dossier; progress can only be made with a cautious approach. All parties involved need to take responsibility to move this dossier forward.”

For the EPP Group, some major concerns still remain that need to be dealt with in order to find an agreement. De Lange concluded: “We are worried that the Communication will not sufficiently tackle the issue of moral hazard as it proposes to immediately use the European fund during a crisis whereas we believe we should use national deposit guarantee schemes first. This would also allow national systems to continue to operate under a European scheme. Finally, the conditionality the Commission proposes between phase 1 and phase 2 is in any case too limited for the EPP Group."