EU struggles to complete vital banking union pillar

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By Jean Comte
16 May 2019

As the term of the EU Parliament and EU Commission draw close to an end, the institutions are busy congratulating themselves about the success of the capital markets union action plan that was launched in early 2015. Work in the field of banking and financial regulations over the last years nevertheless includes one big failure: failure to agree on the euro-area deposit guarantee scheme.

The scheme, which has been talked about since 2012, was supposed to complete the euro area banking union. It was deemed to be the third pillar of this system, after united supervision through the Single Supervisory Mechanism and a common resolution fund via the Single Resolution Fund (SRF).

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