Germany throws doubt over banking union plans

A proposed common-deposit guarantee system isn’t possible under EU law, and would have to be created by a treaty of participating countries, said German finance minister Wolfgang Schaeuble yesterday.

The deposit-guarantee plan is part of Europe’s so-called banking union, which also comprises European Central Bank supervision of euro-area banks and the Single Resolution Board housed in Brussels.

Germany has resisted moving forward with the initiative until risks in the banking sector are reduced.