ECONOMY

Germany rejects joint EU bank deposit scheme

Germany rejects at least for now a standardized Europe-wide bank deposit guarantee scheme, Chancellor Angela Merkel said on Thursday.

Germany, Europe’s largest economy, fears such a scheme would leave its taxpayers footing the bill for mistakes made by banks in other euro zone countries.

Speaking in the east German city of Dresden, Merkel also reiterated her center-right government’s view that in the future bank shareholders should also suffer losses in the event of their institutions receiving euro zone rescue funds.

Wealthy depositors in Cypriot banks were forced to take a hit as part of the recent international bailout for Cyprus. [Reuters]