The European Central Bank (ECB) has assigned its top investigators to auditing the Spanish financial sector following Spain's latest rounds of reforms, which were approved on Friday.
Luis de Guindos, who provided explanations to his colleagues in Brussels, was obliged to allow ECB auditors to look closely at Spain's financial figures.
His decision allows a loss of sovereignty, but to make up for it, the decision will make bank balance sheets crystal clear and dissipate doubts that have been plaguing the sector.
Another consequence is that the Bank of Spain will lose some relevance in the process. Fernández Ordóñez was elected by the People's Party as the scapegoat for financial sector woes, but we have to remember that his limited role and inaction make him a minimal factor.
