With the financial crisis, citizens suddenly realized that different levels and forms of depositor protection co-existed in the EU, whereas they had been told for almost 20 years that a single market was in place. Current deposit insurance arrangements in Europe need to be changed, as they match neither market integration nor consumer expectations.
Commentary: Household Debt in Europe’s Periphery
The second-dip recession in Europe’s periphery has created a poisonous mix, which risks threatening further the financial system and the economy.