CHANCELLOR Angela Merkel has sounded a chilling warning to German savers by telling them they will end up footing the bill if the Eurozone fails.
Mrs Merkel, who has abandoned her opposition to a common European deposit insurance aimed at offering protection across the bloc, told reporters at a press conference in Berlin that her countrymen will be liable in the event of it hitting the rocks.
Speaking alongside French President Emmanuel Macron, she said: “We are also ready to create a joint deposit insurance system in perhaps not the immediate, but more distant future.
“We do want liability and risks to be kept together.”
Mrs Merkel stressed she was “very optimistic” that the banking union, involving the transfer of banking policy from the national to the EU level in several member states, could be completed.
But behind the scenes, there is ongoing debate about how far bad loans from banks need to be reduced before European solidarity can be applied to financial institutions in need.
Mrs Merkel, who agreed to the banking union in March, said she wants to see a further reduction of the debts and risks of national banks in the EU states.
At the time she said Germany had always been willing to give up sovereignty, if things could be better regulated by Europe.
Her country was also willing to help stabilise the Euro and was prepared for joint euro debt, she added.