Bank of Spain is to blame for the economic crisis in Spain. It is the tough criticism from none other than the President of the European Commission, Jose Manuel Barroso.
Barroso lays the blame for the Spanish banking crisis of the Spanish Central Bank for their “highly irregular supervision”. Just before Barroso finishes his ministry time in Europe, he stated that the Spanish central bank to have greatly contributed to the disastrous housing bubble and the subsequent crash of the properties market by not having done their job well enough.
He also rejected the claim that the EU in Brussels “bears its share of responsibility for the crisis.”
In 2012 received the Spanish Government financial support from the European Central Bank. The money went to the part of it to the depressed Spanish banking sector, which is struggling with deficits and debt, based on the failed property investment and non-performing real mortgages.
Several banks and savings banks were forced to band together to qualify for EU support, which involved demands for workforce reductions and centralization.
- Let’s talk about who is responsible for the crisis, it was the EU or the housing bubble, Barroso said at the start of a seminar on “Europe after the crisis”, held at the University Menéndez Pelayo in Santander.
- We have often asked about the situation of Spanish banks, because we had heard that the banks and especially the savings banks had poor economy, but the response was “they were all in great shape,” said the Portuguese EU Commission president, stressing that “Brussels also got know that Spain National Bank was the best central bank in the world.”
- Yet gave permission to overheating of the housing market with an increased surge in private debt, so it all bubbling over. Where the European Central Bank’s responsibility? International Monetary Fund IMF? Or German Chancellor Angela Merkel? No right? It was very big mistake with the supervision of Banco de España and we have to take in the crisis, said the European Commission president.
- It’s easy to say that it was the EU’s fault. But there must be adjustments, such as Iceland did, even if it is not part of the EU or the UK did, stressed Barroso, adding that it has nothing to do with the euro, since none of the two countries has the Euro.
- Let’s be careful and analytical: The crisis began in the United States because of Lehman Brothers, and it’s not Brussels responsibility, he said.
The outgoing EU top manager said it is true that the situation is still very bad in Spain, but there will be improvements this year. He praised the fact that in Spain there is no major euro-resistance, as there are in other countries.
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