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The EU interferes with official bank support

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EU nterference

Just the other day Obama encouraged the nations all over the world to stabilize the financial system with government loans if neccesary. Now questions are being raised as to wether it is consistent with the rules of the EU to give this kind of support.

Banks in need

It is consistent with the EU rules to give money to banks in need, when the money are given as part of a general rescue or restructoring package. It is then ok to support banks that has suffered losses, but to the loss-suffering is a must.

Only support if losses

The European court has in a earlier verdict dealt with matters similar to the current situation. The case conserned state financed support during natural disaters and other exceptionel events. The statement is clear: Governments can only support the Banks if they have suffered losses due to the current financial crises.

Bank packages all over the EU

One can wonder how the many bank packages that are on their way all over the EU can be made to in consistence with the EU rules. The probem is that the aim of the bank packages are the national banks, which makes the foreign banks objects of discrimination.

Written by admin

januar 10th, 2009 at 7:36 pm

Posted in economics,EU

Tagged with , ,