6. The Third Pillar of the Banking Union: The European Deposit Insurance Scheme

This chapter addresses the legislative proposal made by the European Commission in November 2015 for introducing a European Deposit Insurance Scheme. The chapter describes the Commission’s proposal, which builds on national deposit insurance schemes and would be accessible only on the condition that commonly agreed rules have been fully implemented. Following the European Commission proposal, a number of different recommendations have arisen in this area, but none of these options has met sufficient consensus among euro area countries, producing a deadlock in the policy discussion, with no apparent progress in the legislative discussion of the 2015 proposal itself. This chapter investigates the evolution of the third pillar of the Banking Union after the approval of Directive 2014/49/EU.