Europe’s Banking Union ‘Non-Solution’

Thursday, June 7, 2012
By Paul Martin

by Tyler Durden
ZeroHedge.com
06/07/2012

While not quite Biderman-rant-worthy, Stratfor’s more-attractive-than-Charles Kristen Cooper provides a brief and clear explanation, in this clip, of why the creation of a European banking union, which seems to be the cure-du-jour, will do little to help the eurozone’s ongoing crisis in the short-term. The degree of political integration required in order to agree on such a solution will take years to conclude in her opinion with the various constituencies all with different levels of urgency and time-horizon. The sad truth is that while focusing on yet another grand plan will make the leaders of Europe appear as though they are doing ‘something’ (to themselves and others), a banking union in and of itself does little to solve the raging unemployment and more specifically the distrust of Spanish banks. The idea of a banking union is not new (where Berlin would share liabilities for deposits held by Spanish banks, for example, and in return would enable an integrate supervisor of the financial sector – some sovereignty give-ups), but as Kristen concludes: “How long can the eurozone’s political elite focus on long-term solutions concerned with sovereign debt and banking bailouts before a genuine social crisis emerges.”

The Rest…HERE

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