I am not able to find reliable information on this topic. Generally speaking, all deposits in EU banks are secured by national guarantee fund up to about 100k. Image a national fund would fail because the bank lost too much money. Does the EU still guarantee to repay the depositiors up to 100k? Is there some law (any links)? Some law that is on its way? Or are there other mechanisms securing national funds from failing? More specifically, I'm interested in Latvia, which, according to the internet, has a weakend fund system.
The guarantor is the Government of Latvia, the fund is the means of executing that guarantee. Unless the government defaults, the guarantee is valid. See here:
In accordance with amendments to the Deposit Guarantee Law adopted by the Parliament of the Republic of Latvia (Saeima) as from December 16, 2010 compensation of EUR 100 000 (approx. LVL 70 000) is guaranteed to the clients of the Latvian banks (both natural and legal persons) per depositor per each bank (all accounts added together, if several accounts at one bank in one name). The government guaranteed compensation covers deposits, current account balance, salary accounts, savings accounts etc.
In accordance with the Deposit Guarantee Law, in the occurrence of a case of unavailability of deposits in the Fund for paying out the guaranteed compensations, such payments shall be made from the Government budget via FCMC.