Source: European Parliament
Based on aggregate harmonised index of consumer prices[1] for EU Member States as published by the statistical office of the EU, aggregate inflation between December 2010 and November 2024 was 39,6%.
Directive 2014/49/EU[2], does not include a mechanism to automatically adjust the coverage level to inflation. The primary objective of the directive is to improve depositors’ confidence that their deposits up to the guaranteed amount are protected. This confidence limits the risk of panic withdrawals which could threaten financial stability in the EU.
In 2019, the European Banking Authority (EBA) has assessed the adequacy of the current coverage level for deposits, as per Article 19(6) of the directive.
While this assessment[3] did not take into account inflation, the EBA concluded that the current coverage level under Directive 2014/49/EU is adequate and that the proportion of depositors fully covered by the EUR 100 000 coverage level has increased in comparison with 2007.
EBA issued an additional report on deposit coverage in December 2023[4]. According to this report, 96% of depositors are fully covered and a potential increase of the coverage level would have no impact on the vast majority of depositors.
For the above-mentioned reasons, the Commission does not intend to modify the corresponding provisions of the existing framework.
- [1] The Harmonised Indices of Consumer Prices measure the changes over time in the prices of consumer goods and services acquired by households. They give a comparable measure of inflation as they are calculated according to harmonised definitions.
- [2] OJ L 173, 12.6.2014, p. 149-178.
- [3] https://www.eba.europa.eu/sites/default/documents/files/documents/10180/2622242/324e89ec-3523-4c5b-bd4f-e415367212bb/EBA%20Opinion%20on%20the%20eligibility%20of%20deposits%20coverage%20level%20and%20cooperation%20between%20DGSs.pdf?retry=1
- [4] Report on Deposit Coverage in response to European Commission’s call for advice: https://www.eba.europa.eu/sites/default/files/2023-12/cfe9c89f-23ec-42d0-88fd-fc873ff26c76/EBA%20Report%20on%20deposit%20coverage%20in%20response%20to%20EC%20CfA.pdf