EU's Juncker says in favor of treasury for euro zone

STRASBOURG (Reuters) - European Commission President Jean-Claude Juncker said on Wednesday that the euro zone needed a common system of guaranteeing bank deposits as well as its own treasury working with the single currency zone's existing bailout agency. "We will propose moving towards a deeper economic and monetary union, a system of deposit guarantees and various other initiatives. I think it is essential that we have a common deposit guarantee scheme... It will be a reinsurance scheme," Juncker said in his state of the union address to the European Parliament. "We are also in favor of introducing a European treasury... Obviously there will be a lot of work to be done on the content of it, but I think it is important that the European Union should have a treasury which can work with the stability mechanism and can dovetail with the work being done by that institution." (Reporting By Philip Blenkinsop)