Large savers in the European Union could face losses starting in 2016 if a bank runs into serious trouble, but deposits below 100,000 euros should be fully protected, European media report the voting results of the members of the relevant committee of the European Parliament.
– The rescue of any lender should be carried out according to a clear hierarchy, with savers holding deposits over 100,000 euros being last in line when it comes to ‘unpacking the bag’, while deposits up to 100,000 euros should be completely protected, quotes the news portal EUobserver from the statement of the spokesperson for the Greens on economic and financial policy, Philippe Lamberts.
The result of their vote is an addition to the European Commission’s proposal on the resolution and liquidation of banks, under which taxpayers should be spared the burden of rescuing financial institutions that are ‘too big to fail’.
However, they will not be completely spared.
Members of the European Parliament warned that the Commission’s proposal must also include a scenario for the ‘worst possible outcome’. They added that ‘in times of systemic crisis, member states could exceptionally provide financial assistance’.
They do state, however, that such tools should be ‘the last resort, after all other liquidation tools have been reconsidered and applied to the greatest extent possible, while simultaneously preserving financial stability’.
