The European shield against crisis protects especially the eurozone

Pressed by the fall without precedent of the European stock exchanges and by the overall bankruptcy spectrum of the international financial-banking system, the European Union’s leaders want a joint strategy against crisis which to protect, first of all, the club of the countries from the eurozone.The details of this strategy aren’t for the moment clear, as it isn’t clear how determined are the states to really participate to the common effort for combating the effects that the world financial-banking crisis has on the European economies. Again, it isn’t known for sure if countries such as Romania or other new European member states will be “cached” in the rescue plans elaborated in common with the European Commission, European Central Bank and the occidental governments. Till now, every state has adopted individual measures of protection. Germany, Austria, Denmark and Great Britain have defied all restrains related to the limits admitted for that a state to interfere in economy, imposed by the regulations of the European Commission, granting a prompt and generous support to the troubled banks. Their action, even if it is justified by the gravity of the situation, can destablish the fragile equilibrium of the banks from the countries which don’t afford to termless guarantee the deposits of the population and of the companies. On these terms, the consolidation of the banks from the euro zone could take place with the price of the stability from the new member states, which could confront with a real exodus of liquidities towards this real banking paradise.

Measures of support in the European Union and in the member states

European Union

As a result of the agreement between the finance ministers of those 27 member states, dating since October 7, 2008, the minimum limit for guaranteeing the deposits of population was increased from 20 thousand euro up to minimum 50 thousand euro for all countries. Romania is included in the new guaranteed minimum

Austria

The Austrian government has approved on October 8, 2008 a detailed plan for guaranteeing the deposits, according to which the savings of the population are integral guaranteed, no matter of the sum. The measure entered retroactively in force, on October 1, 2008 and follows to be submitted to the approval of the Parliament. It isn’t taken into account to be voted down, but the one of being promulgated as a law. Separately, the government has adopted a set of initiatives directed to consolidate the banking system from Austria, such as: setting up a legal basis which to allow granting public guarantees for the needs of liquidities on long term of the banks; setting up of a legal basis for the capital contribution from public money for consolidating the troubled banks; setting up a legal basis concerning the operations of clearing with liquidities and granting guarantees from the state to the loans from the financial-banking markets.

Belgium

The Belgium state guarantees deposits of the population to banks till the limit of the value of 100 thousand euro/deposit/bank. Concomitantly, according to the announcement made by the Prime Minister Yves Leterme, starting with October 9,2008, the state guarantees all the interbanking operations from the national Belgium system. The guarantees are granted after the Dexia model, respective the banks will pay a commission/tax in exchange of theses public guarantees, whose value will compensate the advantage obtained as a result of country’s intervention.

Bulgaria

The deposits of the Bulgarian citizens are integral guaranteed till the limit of 50 thousand euro/deposit/bank.

Cyprus

The state guarantees the deposits of the population till a maximum limit of 100 thousand euro/deposit/bank, and the government has announced that disposes of a rescue fund for the troubled banks amounted to 2 billion euro.

The Czech Republic

According to a decision of the Czech government, adopted on October 9, 2008, guaranteeing the deposits of the population is made till the limit of 50 thousand euro, and to the customers of the banks that are in bankruptcy, the losses will be compensated in percentage of 100%, against 90%, as it was till the present.

Denmark

The Danish state integrally guarantees the deposits and engages itself to cover all the payment bonds which the troubled banks have against creditors and customers. This measure is in force in the period October 5, 2008 – September 30, 2010 and it is financed from the public budget and from the contributions of the banks that are in the system reaching to a fund of 4,4 billion euro, especially set up for rescuing from bankruptcy the Danish banks.Another measure of strengthening the stability of the Danish banking system is the one since October 8, 2008, consisting in adopting of an integral guarantee scheme of the banks’ solvability, for facilitating the access of these to some liquidity from the interbanking bank. There are eligible for this guarantee scheme all the solvent banks from Denmark, inclusively the foreign subsidiaries of the Danish banks and the subsidiaries of the foreign banks that operate in the country. The measure was adopted for a period of two years, with the possibility of prolonging it, if necessary. The financing derives from private funds, being optional the participation of the Danish state with public funds.

Finland

The Finnish state guarantees the deposits of the population in banks in the limit of 50 thousand euro. The measure is in force till the end of 2009, when will be taken again the limit of 20 thousand euro.

France

The French state obliges itself to financially interfere, inclusively through direct participation, for rescuing the banks that are in bankruptcy.

Germany

All the present and future deposits from the commercial banks are integral guaranteed.

Greece

The state guarantees the deposits of the population till the limit of 100 thousand euro/deposit/bank. The Government from Athens has assumed the engagement to guarantee also the deposits of the legal persons, but there isn’t still a legal regulation in this sense.

Hungary

The government from Budapest has announced that it can integrally guarantee the deposits of the population. Yet, for the moment it was increased only the maximum limit of guarantee to 50 thousand euro.

Ireland

According to the decision from Dublin, since September 30, 2008, there are integral guaranteed all the deposits, regardless of the banks, debts and bonds. The period in which the guarantee scheme operates is of two years, being compulsory a periodical reexamination of its opportunity. The beneficiaries of these measures are the Irish banks, and also the foreign ones that activate in Ireland. Financing the guarantees is made by public and private banks, in which are geared the banks, beneficiaries of guarantees.

Italy

The stability of the Italian banking system is protected through: the intervention of the state through the recapitalization or by purchasing the assets of the troubled private banks; setting up of an intervention fund, consisting in credit lines granted in case of bankruptcy, amounted to 20 billion euro; setting up of a guarantee fund of all the banking deposits till the limit of 103 thousand euro.

Lithuania

It was increased the guarantee limit of the deposits from 22 thousand euro up to 100 thousand euro. The measure is valid for one year.

The Netherland

The maximum limit of guaranteeing the deposits was increased to 100 thousand euro. Also, the government has set up a rescue fund of the financial sector amounted to 20 billion euro.

Slovakia

All the deposits of the natural persons, and also the deposits of certain categories of legal persons are integral guaranteed and without limit of sum.

Slovenia

The deposits from the banks that operate on the Slovenian territory are integral guaranteed, regardless of the value.

Spain

It was increased the limit of guaranteeing the deposits of the population from 20 thousand euro up to 100 thousand euro. The Spanish government has also announced the set up of a fund amounted to 50 billion euro, directed to purchasing “non-toxic” assets from the troubled banks.

Sweden

There are guaranteed the deposits of the natural and legal persons till the limit of 50 thousand euro. In what concerns the subsidiaries of the foreign banks from third countries which operate on the territory of Sweden, if these confront with risks that can affect the stability of the Swedish banking system, the government can interfere for supporting the deponents just in the situation in which in the origin country there are schemes of guaranteeing the deposits.
The intervention can not exceed the guaranteed sum in the country of origin of the bank.

Great Britain

The deposits of the population are guaranteed till the limit of 50 thousand pounds. The British government has set up a rescue scheme of the banks and of some big companies from the construction sector, making available funds amounted to 500 billion pounds. To these are added other 200 billion deriving from the Bank of England and banking guarantees amounted to 250 billion pounds directed to stimulate the banks to credit each other.