In an article on the Financial Times, Scholz explained that Euroland credit institutions must have a common deposit insurance system. A necessary step, otherwise the global role of Europe would be compromised if it were not completed integration of the eurozone financial sector. "The need to deepen and complete the European banking union is undeniable. After years of discussions, the stalemate must end", the number one of the German Treasury wrote, highlighting that with Brexit, the EU will lose the City Londoner – its biggest financial center – and that means it is time to promote better integration of euro area banks.
The most surprising element contained in Scholz's proposals is the his plan to create a common European system to protect depositors during a bank collapse through a backstop compared to national guarantee funds.
Germany has always rejected such a plan, amid public hostility to any perceived attempt to put Teutonic tax payers in danger for unstable banks in other countries. The reinsurance system would act as support for national funds, helping to ensure that governments can honor their legal obligation to protect deposits up to 100,000 euros in case of bank failure. Accepting some form of a common European deposit insurance mechanism was not "a small step for a German finance minister," Scholz said.
However, his proposals present heavy warnings and conditions, which are likely to arouse concern in EU Member States with weaker finances and fragile banking sectors and his proposals are likely to find opposition also in Germany. The intervention was immediately promoted by the analysts of Goldman Sachs, that "this proposal will probably have a greater weight on the market, compared to the previous ones". The ball now to Angela Merkel.