In my view, the banking union can be established without simultaneous creation of the pan-European deposit guarantee scheme (DGS). Harmonisation of national DGS and their use could already be sufficient step forward, including the ex ante collection of funds from banks into the deposit guarantee funds.
Key features of the planned supervisory mechanism SLIDE: Timeline for the establishment of the SSM If all goes well, the European Parliament should vote on 7 July and the SSM regulation could enter into force in the beginning of August this year – meaning that the actual operation of the SSM could start in August 2014, and then the ECB could assume its direct supervisory duties.