BRUSSELS, Oct 15 (Reuters) - Bank deposits in the European Union should be guaranteed up to 50,000 euros ($68,300), rising to 100,000 euros a year after the reform takes effect, the European Commission proposed on Wednesday to reassure investors.
EU governments have agreed in principle to raise the minimum guarantee required under the bloc's rules to 50,000 from 20,000 euros. Many will up it straight away to 100,000 euros to soothe depositors facing the worst financial turmoil since the 1930s.
"Increasing the minimum protection will strengthen Europeans' confidence in the safety of their deposits," EU Internal Market Commissioner Charlie McCreevy said in a statement.
The maximum amount of time for payouts if a bank fails would be three days compared with three to nine months at present. (Reporting by Huw Jones, editing by Dale Hudson)
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