BERLIN (Reuters) - Eurogroup chief Jeroen Dijsselbloem said weak links in the banking sector would need to be removed before a European deposit insurance scheme could be introduced in 2024.
He told the Handelsblatt newspaper in an interview that the European Commission's proposal for a European Deposit Insurance Scheme (EDIS) was a "good basis for negotiation".
"We need to use the transitional phase towards full deposit insurance in 2024 to reduce risks in banks balances," he told the paper.
The Commission proposed last month guaranteeing European Union bank deposits of up to 100,000 euros (£70,928), no matter which bank or country they are in by 2024, in a bid to complete the 28-nation bloc's banking union.
But Germany opposes the idea of setting up an EU-wide guarantee, fearing its accumulated funds could be used to guarantee the deposits of savers in other European countries.
(Writing by Caroline Copley; Editing by Alison Williams)
