Michael McGrath (Cork South Central, Fianna Fail)
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362. To ask the Minister for Finance the status of his Department's work on the ad hoc working group on the European deposit scheme; and if he will make a statement on the matter. [26409/16]

Michael Noonan (Limerick City, Fine Gael)
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Following the recommendations of the Five Presidents' Report on the completion of the Economic and Monetary Union of 22 June 2015, the European Commission presented on 24 November 2015 a proposal to establish a European Deposit Insurance Scheme (EDIS). At the same time, the Commission published the communication "Towards the Completion of the Banking Union". On foot of this a temporary Ad Hoc Working Party (AHWP) on the Strengthening of the Banking Union was established within the Council. This AHWP, chaired by the rotating Presidency, is composed of representatives of all Member States at the appropriate level, regardless of their intention to participate in EDIS or not. The European Central Bank and Single Resolution Board attend as observers.

I believe EDIS is an essential part of the overall Banking Union project, particularly since it should ensure that savings are equally protected in all Member States, thus further weakening the link between banks and the sovereign. It is my view that EDIS should be in place as quickly as possible and should not be contingent on progress on other risk reduction measures.

My officials are engaging on an ongoing basis with the AHWP with the aim of achieving the introduction of EDIS as quickly as possible.  Under the Slovak Presidency the discussions have moved into a more technical phase as the current text is being discussed on an article by article basis. The Department is also working closely with the Central Bank to ensure that they are kept abreast of developments in this area and have the opportunity to provide comments on the issues being discussed.