It is a hotly debated topic these days, and rightly so. Strong deposit insurance is essential to reassure depositors and thus prevent runs and contagion. Therefore, it certainly makes sense to think about ways to shore up this backstop in Europe. That said, you will probably be aware that the Bundesbank is one of the institutions that have been arguing against implementing EDIS prematurely.
And that’s not because we reject this proposal outright. The Bundesbank’s position is not about blocking EDIS indefinitely. It is about sequencing the steps in the right order in order to reach the best possible solution. And there are a number of issues which need to be addressed first. A European deposit insurance system would entail a mutualisation of liability.