"While reaffirming that a common deposit insurance would be “a huge proof of trust” and that progress will only be gradual, Merkel said that Germany is committed to reaching this goal."
“I have once more looked at how the Italian risks in the banks have developed,” [Merkel said] “I am very content that in the past few years big steps have been taken in this area, in all euro states, also in Italy. This is a good basis to continue the work.”
"Speaking alongside Merkel, Conte skirted the details of the debate but restated Italy’s goal of strengthening the setup of the euro-area. “We do not fear any instability” in our financial system, he said. “We believe that this discussion should proceed in a balanced way.”"
So, if a centrally-planned monetary system with some pseudo-capitalist banks (on the bottom of this scheme) doesn't work as planned, more central plans (=socialism) are necessary. By this measure the more solvent banks will be pulled down by the already insolvent ones. This will get ugly if the shit hits the fan.