Banks to help each other, not taxpayers by Zivka Deleva

Europe is thinking of a way to improve the banking system and at the same time to try to strengthen the unsteady economies of the European Union members. The former French foreign minister Michel Barnier has an idea how to do that, which he explained in front of the members of the EU's financial services, that he leads. He thinks that the bad banking working shouldn't be a punishment for the people, but for the banks its self. Meaning, that if one bank works bad, another could help her and not the taxpayers. This insurance levy is going to be enforced in the national economy, but a bilateral help is not excluded. "What I'm proposing is logical -- banks paying for banks,! not taxpayers. We're going to have to look closely into this question. In half of all European countries, half of their banks are owned by groups from other countries" - Barnier said. He thinks that each of the 27 countries should implement this program. This is a time of necessary steps, no ideologies, no empty words, but a lot of work, realistic and practical ones. According to the figures, around 13 percent of economic output goes to bailout banks in the last two years, since the crisis has showed up. As Mr.Barnier says "prevention is better than cure - and it's always cheaper" - that's the whole truth and nothing but the truth. In this purpose, the European Commission adopted a Communication yesterday. Bank resolution funds are going to be organized in a network and that will ensure Europe from destabilizing the financial systems. This important subject is going to be discussed on the next G-20 Summit in Toronto, on 26-27 June. As the Commission says "the funds w! ould not be used for bailing out or rescuing banks, but only t! o ensure that a bank's failure is managed in an orderly way and does not destabilize the financial system."

by Zivka Deleva for Cantell TV (http://cantell.tv)

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