The European Commission proposes a minimal deposit guarantee of 100.000 euro

The European Commission has proposed to increase the minimum deposit guarantee threshold to 100,000 euro in one year, from 20,000 euro at present, while the payout period in the event of bank failure is to be reduced from three months to three days, the Commission said.

"The new rules are designed to improve depositor protection and to maintain the confidence of depositors in the financial safety net," the EC said in a report.

The EC said that under the new rules, the minimum level of coverage for deposits will be increased within one year from 20,000 euro to 100,000 euro, and initially to 50,000 euro in the intervening period.

The proposal now passes to the European Parliament and the Council of Ministers for consideration.

In Romania, the government has approved on Tuesday an emergency ordinance to increase the minimum deposit guarantee threshold to 50,000 euro, from 20,000 euro for a one-year period starting October 15.

On Monday, central bank governor Mugur Isarescu said that there was no need for an increase of the minimum deposit guarantee threshold as 99.2% of the bank deposits in Romania are below 20,000 euro, but the Romanian authorities need to comply with the European regulation.