Brussels, 17/12/2008 (Agence Europe) - On Thursday 18 December, the European Parliament voted on the report by Christian Ehler (EPP-ED, Germany) on the draft directive on deposit guarantee systems. In the form of single amendment, it will adopt the compromise reached during the informal trialogues with the Council and subsequently open the way to the adoption of the text in a first reading, only nine weeks after its presentation (EUROPE 9762). MEPs gave up their previous demand of a maximum of 17 days for repaying deposit guarantees during bankruptcies, as sought by the parliamentary committee (EUROPE 9799) and agreed to the 35 day deadline sought by the Council (EUROPE 9786): five days to work out whether a bank has recovered the requested deposits; twenty days (which can be extended by ten days) to pay back the deposits. The parliamentary committee's suggestion to pay €1000 to enable savers to meet urgent spending needs in the event of bankruptcy was not retained. The Commission will provide a report by the end of June 2011 on the effectiveness of procedural deadlines and the possibility of reducing this deadline by ten days. Internal Market Commissioner Charlie McCreevy declared during the plenary debate on Wednesday evening: “I am concerned about the possibility of having to witness once again pictures of citizens queuing at their banks the next time they hear that the bank is in trouble”. According to current legislation, the repayment deadline varies from three to six months. The political agreement also sets out a minimum deposit guarantee ceiling at €50,000 by the end of June 2009. This ceiling will be harmonised by the end of 2010 to €100,000 if the Commission confirms such a need in the report expected out at the end of 2009. The political agreement also includes an end to the co-insurance system according to which savers would have to bear a 10% loss of their deposit guarantees. (M.B./transl.rh)