News from Welsh Labour

AM urges UK government to back EU scheme to protect Welsh businesses

A Member of the Welsh Assembly is urging the UK Government support a decision by the European Parliament which aims to offer increased protection of bank deposits of Welsh companies and councils. Under the proposal, from 2010 onwards, bank deposit guarantees across Europe, would rise from the current level of €20,000 to €100,000 (or £18,690 to £93,450 in Sterling).

Wrexham AM, Lesley Griffiths made her call following a decision reached last week by the European Parliament that could mean that 90% of deposits by European small and medium enterprises, local authorities as well as to individual savers, will be protected against the failure of financial institutions in the future. The current regime guarantees up to 65% of such deposits.

Last week MEPs voted through a proposal – based on an original scheme by the European Commission in October – which would raise bank deposit guarantees to €100,000 from 2010.

It now rests with the UK Government to endorse the decision and Lesley Griffiths hopes the proposal will be backed. Commenting, she said:

“The one thing we have all learned over recent months, is that the financial turmoil we have witnessed and experienced, has been truly global. The problems faced by the investments of some Welsh public bodies in Icelandic banks, proved just how vulnerable both they have been to the instability of the financial sector.

“Global problems require global solutions, so news that the European Union is taking steps to protect small and medium sized enterprises and local councils, is to be welcomed.

“It is absolutely essential that full confidence in our financial institutions is restored as soon as possbile. Given what has happened recently, it has is hardly surprising that business and public authorities confidence has been shaken.

“I hope the UK Government will support this move by the European Parliament to increase the level of guarantees on bank deposits. This would be a big step towards helping Welsh businesses and councils regain trust in our financial institutions.”

Other news from Welsh Labour

• Carwyn Jones sends congratulations to new President of Ireland - 1 November 2011
• Decision day dash to save Wales from savage cuts - 5 May 2010
• Almost half Welsh Labour MPs come out for Carwyn Jones - 21 October 2009