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Chart of the week: the silent run

Publishing date
24 May 2012
Shahin Vallée

Yesterday’s informal dinner of the European Council discussed the growth agenda and the prospect for Eurobonds. But it also, for the first time, erred the idea of a supranational deposit guarantee scheme. This is something we had been advocating for a very long time but has taken a whole new sense of urgency with the acceleration of deposit attrition in a number of countries.

The monthly data suggest nonetheless that “runs” on banks are still very localized and that they are largely concentrated in Greece and Ireland. However, the debate over a deposit guarantee (whose shape and form is still unclear) could be immensely helpful in reducing the risks of deposits flight in other fragile banking systems (Spain, Cyprus…).

More importantly, this ought to set in motion other necessary elements of a banking union: a supranational resolution scheme and a real federal supervisory authority.



About the authors

  • Shahin Vallée

    Shahin Vallée is head of DGAP’s Geo-Economics Program. Prior to that, he was a senior fellow in DGAP’s Alfred von Oppenheim Center for European Policy Studies.

    Until June 2018, Vallée was a senior economist for Soros Fund Management, where he worked on a wide range of political and economic issues. He also served as a personal advisor to George Soros. Prior to that, he was the economic advisor to Emmanuel Macron at the French Ministry for the Economy and Finance, where he focused on European economic affairs. Between 2012 and 2014, Vallée was the economic advisor to President of the European Council Herman Van Rompuy. This experience has put him at the heart of European economic policy discussions since 2012, in particular on issues related to the euro area and international policy coordination (IMF, G20). Having started his career working for social investment vehicles and entrepreneurship in Africa, he has also worked as a visiting fellow at Bruegel, a Brussels-based economic think tank, and as an economist for a global investment bank in London.

    Vallée is currently completing a PhD in political economy at the London School of Economics and Political Science. He holds a master’s degree from Columbia University in New York, a degree in public affairs from Sciences Po in Paris, and an undergraduate degree in econometrics from the Sorbonne.

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