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Buch enters reservation on common deposit guarantees
Bundesbank deputy says safeguards must be put in place first
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Deutsche Bundesbank deputy president Claudia Buch today (February 4) said the eurozone had not yet met the essential preconditions for a common deposit guarantee scheme, and warned of the danger of creating moral hazard.
Buch's concerns reflect the complaint that ever closer union in the eurozone creates numerous avenues for risks to be "mutualised", and for certain taxpayers to end up footing the bill for other countries' incautiousness.
She told a conference jointly hosted by the Bundesbank
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