Germany threatens action over deposit guarantee scheme

Wolfgang Schäuble warns he is prepared to go to court to overturn Brussels’ plans

Germany’s finance minister has warned he is prepared to go to court to overturn Brussels’ plans for a euro-zone-wide deposit guarantee scheme.

The move is the starkest warning yet that the region’s most powerful member is implacably opposed to the proposal in its current form.

In a sign of heightened tension over the deposit insurance plan, Wolfgang Schäuble also fired a shot across the bow of the European Central Bank for advocating it, saying Frankfurt was improperly intervening in a policy beyond its monetary remit.

Speaking during a public session at a meeting of EU finance ministers in Brussels, Mr Schäuble lashed out at Vitor Constâncio, the ECB’s vice-president, saying the bank was running roughshod over rules requiring it to have a firewall between monetary policy decision making and bank oversight.

– Copyright The Financial Times Limited 2015

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