German plans for a guarantee on retail bank deposits seem less liable to give rise to distortions of competition than any scheme covering a wider spectrum of savings, the European Commission said this afternoon.
"We were informed by the German authorities of their intentions," a Commission spokesman told a regular briefing.
"The measures seem to be limited to retail bank deposits and so less liable to give rise to distortions of competition."
Germany pledged on Sunday to guarantee private deposit accounts, a move which spurred similar action by Austria and Denmark. Ireland issued the first such guarantee last week, prompting criticism of a fragmented European Union response.
"In general, retail deposit guarantee schemes for savers can be an appropriate policy response regarding the stability of the banking system," the Commission spokesman, Jonathan Todd, said.
On the Irish measures, Mr Todd said the Commission was looking closely at their scope "because they go beyond retail deposits and the extent they may be open to non-Irish banks present on the Irish markets."
He said the Danish authorities had been in touch with the Commission over the past week and that the EU executive had received some details of that country's plans.
"We take note that the guarantee scheme concerns retail deposits and is not discriminatory, apparently," Mr Todd said of the Danish measures.
Reuters