EU in search of solutions to protect savings

Facing the threats on the European banking system, the European Union is in search of a system able to protect the bank deposits of the natural persons. Several member states already increased the guaranteed deposit limit, in order to avoid panic, AFP informs.

The European legislation currently forces banks to guarantee deposits up to 20,000 Euros, but things are changing in each state.

In brief:

– France guarantees deposits up to 70,000 Euros;

– Belgium offers a minimal guarantee of 20,000 Euros, but promised not to let any client in difficulty;

– Italy guarantees deposits up to a maximum of 103,291 Euros, while Prime Minister Silvio Berlusconi announced that he will not accept any losses for the Italian deposits;

– Ireland announced that all six major banks – Bank of Ireland, Allied Irish Bank, Anglo Irish Bank, Irish Life and Permanent, Irish Nationwide Building Society et Educational Building Society – worth a total of 400 billion Euros, are guaranteed for the next two years, without any maximum limit mentioned;

– The United Kingdom guarantees a maximum deposit of 35,000 pounds sterling (some 44,000 Euros), but the amount is about to increase to 50,000 ponds (63,000 Euros);

– Germany has a particular system that guarantees up to 100% of the deposits;

– In Romania, starting on January 1, 2007, the moment of Romania’s accession to the EU, the guaranteed deposit level is 20,000 Euros.