Moreover, when banking supervision and resolution are brought to the European level, a single European deposit guarantee scheme will be less urgent. Because thanks to the pecking order laid down in the Bank Resolution and Recovery Directive, less funds will be required for the compensation of depositors in extreme cases.
The ECB Governing Council, which sets monetary policy for the euro area, benefits from such dialogue in two very important ways.1 The first is that it enriches our understanding of the state and the drivers of the economy. Earlier today, I had the opportunity to meet with local high school students.