The Eastern European banking crisis

The Financial Times comments on the banking crisis in Eastern Europe and calls on the European Union to help: "Great statesmanship is now vital to save Europe's economy – and its union. There has been precious little on display. Too many EU leaders are continuing their secular repatriation of the Union's powers – especially in core areas such as competition and state aid. ... The largest banks active in Eastern Europe have called for a unified European policy to help them support their subsidiaries. Self-serving as it may be, their call must be heeded. The EU must commit its members to rescuing their banks in non-discriminatory ways: any state guarantees must also cover subsidiaries in other EU countries. Those members without the resources to save their banks should be helped through the European Investment Bank or the European Bank for Reconstruction and Development."

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