BERLIN (MNI) – The German government on Monday said Spain is fully
liable for the planned European aid for the country’s banking sector,
stressing that a final decision on allowing the European bailout funds
EFSF and ESM to loan directly to banks has not yet been made.
“The recapitalisation of Spain’s banks will be according to the
guidelines of the EFSF,” German government spokesman Steffen Seibert
said at a regular press conference here. “The state is liable.”
A decision on the European level to allow the rescue funds to lend
directly to banks can only be taken once a joint banking supervision has
been successfully implemented, Seibert said. “This future decision would
need to be taken unanimously,” he explained, adding that the German
parliament would also have to approve it.
EFSF CEO Klaus Regling, however, suggested in an interview with
German weekly Welt am Sonntag published Sunday that the decision has
already been taken that Eurozone member states will not be liable for
fiscal aid given directly to their banks once a joint banking
supervision in Europe is in place.
“If there exists a real banking supervision by the ECB, then it
would be possible that we give loans directly to banks and not hand them
over via the government as we do currently,” Regling explained. “Then
the country isn’t liable.”
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
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