ECB wants to cut aid for banks

The European Central Bank on Thursday announced that it will leave the prime interest rate unchanged at one percent for the present and reduce liquidity aid for banks. In doing so the ECB has given a first cautious signal of change, the liberal-conservative daily Corriere del Ticino writes: "The bankers in Frankfurt are thus letting it be known that they reject the European banks' dependence on this form of refinancing because it is basically tantamount to subsidising. They also reject it because they know all too well that this capital was not used to fight the hesitant granting of loans to companies and families. Instead the banks used it to compensate for their loss of capital or to indulge once more in major speculation."

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