The redoubtable Dijsselbloem

The de-facto status of the 100k limit is misty but as far as I can tell, de jure no Eurozone country is committed to securing the deposits of other countries up to 100k. So far only Cyprus had to deal with this specific issue and if it couldn’t insure its banks deposits up to 100k it wasn’t, technically, anyone elses problem.

The EU and Eurogroup are expert at making such things their problem though. Of course when the bottom line is the interest of the electorate, it really is their problem. Like Dijsselbloem implies, politicians ought to look after the interests of the electorate first. Germany and the Netherlands don’t rescue Cyprus out of Europiety, it is to secure their own interests.

Insisting Cypriot deposits below 100k ought to bail in too may well have been a political strategy. Obviously it alerted everyone that we have that limit and that as long as we do not a banking union, it isn’t a sacred limit.