EU calls for banking union completion by 2018

Added On October 13, 2017

The European Commission sets out an ambitious path to complete the banking union.
It aims to place the European banking sector on a sounder footing and restore confidence in the euro.
The Commission published a communication on Wednesday, saying European citizens and businesses will benefit from deeper financial integration and a more stable financial system.
Early in 2015, the Commission proposed a Europe-wide deposit insurance scheme, as part of the plans to better supervise its banking sector and move towards the banking union. 
The scheme would guarantee deposits sitting in personal accounts across the eurozone in cases of bank failures. 
But the proposal never made any progress in the past two years due to reluctance of its largest economy Germany. 
The Commission on Wednesday proposed a more gradual version of the scheme, which it hopes will pave the way for the consensus on the remaining measures by 2018. 
SOUNDBITE(English) VALDIS DOMBROVSKIS, Vice President of European Commission
"Completing the Banking Union is essential for leading to an Economic and Monetary Union that can better withstand and absorb any future financial crises. It will also promote deeper financial integration, which further reduces the links between banks and sovereigns. Thanks to more risk-sharing via private markets, taxpayers will be better protected from having to shoulder the burden of bank failures. More integration will also help give consumers cheaper and more diverse options for financial services."