Deposit Guarantee Scheme (Directive)

On 7 October 2008 the Council called for an increase of the coverage level for deposit guarantee schemes. Depositor confidence which was severely damaged through the bank crisis should be restored by such measures. The proposal submitted by the Commission first provides for an increase in the coverage level of EUR 20,000 to EUR 50,000 retroactively as of 15 October 2008 and then for an increase to EUR 100,000 effective as of 1 January 2010.


The key idea of the Directive, the restoration of depositor confidence through an improved deposit coverage is to be welcomed and is pursued by the Directive. However, the retroactive increase of the coverage level to EUR 50,000 is not necessary, as is the increase of the coverage level to EUR 100,000 scheduled for 1 January 2010. Moreover, the intended retroactive effect raises substantial constitutional concerns, at least in Germany.