Clearly separate banks from state treasuries

In view of the new bailout plan for Spain's banks on the weekend, the left-liberal daily Politiken demands that a clear distinction be made between states and their banks: "The solution is the creation of a banking union within the EU countries. ... The goal is simple: no bank in Europe should be too big to fail. ... Through strict lending and liquidity requirements the banks should be made capable of looking after themselves. Then it would no longer be the taxpayers, but the owners in the form of shareholders, who must bear the losses when speculative deals go awry. A functioning banking system is of fundamental importance for Europe's economy and labour market. For that reason tighter supervision of banks should not be driven by a thirst for revenge, the desire for a planned economy or pure envy."

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More from the press review on the subject » Fiscal Policy, » Financial Markets, » Banks, » Spain, » Europe
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