Banks and voters in core countries (let alone Britain, whose position in a more integrated European banking system is very muddy) would be reluctant to insure peripheral deposits.

ECONOMIST: Preventing a big European bank run

What's more, a European fund would not have to be big enough to deal with simultaneous deposit runs across all of Europe but only with ones in the periphery, since money would presumably flow to banks in core countries such as Germany.

ECONOMIST: Preventing a big European bank run

The economies in the core countries have plenty of slack, as prices are barely rising.

ECONOMIST: Europe grows apart