In an unusually bold statement, the German Savings Bank Association (DSGV) expressed deep concerns about a banking union in Europe. The concept was based on "completely false assumptions" and was aimed only at bailing out banks using the money of German savers. Georg Fahrenschon, president of the DSGV, instead wants national regulators to be closely overseen by the ECB. He also wants the European Banking Authority (EBA) to be shut down altogether.
German Chancellor Angela Merkel is not willing to move ahead quickly with allowing direct aid for European banks from either EFSF or ESM. Instead, she confirmed that every state will have to guarantee for its banks. This will lead to higher deficits in states where banks need to apply for money from the bailout funds.