Yesterday the European Commission mercilessly attached Spain´s current savings bank restructuring program.
Yesterday the European Commission mercilessly attached Spain´s current savings bank restructuring program. It was doubted that Spanish authorities would end reforms as a result and that once again Brussels would prescribe another formula for Spain. This would be on top of a pile of recommendations on economic strategy and budgets that were unveiled yesterday, a pile in which each and every one of the 27 countries of the EU saw and left with their duties in tow. The sharpness of the criticism was unusual.
"Despite planned and ongoing actions and the government´s commitment to The Pact for the Euro to end restructuring of the sector at the end of September 2011, many pending issues remain," said one of the two reports on Spain that were published yesterday by the committee head.
Politicization and Efficacy
"Savings bank reform isn´t only about problems created by local government authorities, although the ceiling above the public entities´ voting rights has been dropped from 50% to 40%," grieved the report conducted by experts in the European Commission.
Because it is not enough to mildly doubt the efforts to updates the banks, Brussels dropped another heavy weight on the process: "The fact that consolidating the savings banks has been widely done through what is known as cold fusion instead of complete fusion, raising uncertainties about the speed and efficiency of the restructuring."
Edited in English by Brandon Dyches and Jose L. de Haro (for comments contact: joseluisdeharo@eleconomista.es)
