Savings in eurosComments
With ISPI – the Institute for International Political Studies
In this edition of U-talk our question is from Alex, from Lyon:
“What is the future for savers who make euro-denominated investments in funds when there are so many question marks hanging over the future of the single currency?”
The response is from Antonio Villanfranca, Senior researcher at the Institute for International Political Studies, Milano:
“When it comes to the deposits and whether they are safe, if there is a safe situation for citizens in Europe, well the answer should be “yes”.”
“But the point is that in order to guarantee these deposits, this kind of insurance in a way is given by nations. It’s only a nation-based supervision. That is the problem, we have to move the control and also a sort of insurance on the deposits from the national level to the European level.”
“We have to move to a sort of banking union, European banking union, which should also of course include a sort of European supervision, at least of the biggest banks, and which should also provide a sort of guarantee on the deposits at the European level.”
“But first of course, we have to consider this framework for a banking union and then consider also the possibility to give this sort of guarantee on the deposits.”
At the European Council in late June, the leaders of the 27 laid the groundwork for a banking union. By the end of the year, a single monitoring mechanism of all banks in the euro zone should be created. The system will be linked to the European Central Bank.
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