Strategy set for bank aid
(11 November 2009 – Europe) The European Union’s executive commission has suggested ending bank aid in June 2010 and said that they would start withdrawing aid at the latest by 2011.
The Governments will also have to look at divesting their stakes they brought to rescue banks with extra capital and end purchase problem assets programs.
However, Anders Borg, Swedish finance minister, has said that it is ‘premature’ to end targeted support to the financial sector.
There is a need to keep these systems going for quite some time; this is very difficult to assess given that there are now extremely low credit amounts due to low investment levels, Mr Borg added.
The European Commission has said that the 27 nations included in the European Union should see growth lift by 2011.
It is forecasted that the nations’ growth should be around 1.6 percent after picking up by 0.7 percent next year.
The stronger growth will encourage governments to end stimulus programs which are boosting the economy at the moment, shifting the focus to tackling public debt and budget deficits.
The European executive commission also wants to see countries take action to reduce budget gaps under an EU limit of 3 percent gross domestic product.
EU Economy Commissioner Joaquin Almunia said he would set deadlines for nine countries to bring their deficit down: Germany, the Netherlands, Italy, Austria, Belgium, the Czech Republic, Portugal, Slovakia, and Slovenia.
Mr Almunia also said they would assess efforts by Britain, France, Greece, Spain and Ireland to meet deadlines set last April. Some of these countries may get their deadlines extended by an extra year.
However, Anders Borg, Swedish finance minister, has said that it is ‘premature’ to end targeted support to the financial sector.
There is a need to keep these systems going for quite some time; this is very difficult to assess given that there are now extremely low credit amounts due to low investment levels, Mr Borg added.
The European Commission has said that the 27 nations included in the European Union should see growth lift by 2011.
It is forecasted that the nations’ growth should be around 1.6 percent after picking up by 0.7 percent next year.
The stronger growth will encourage governments to end stimulus programs which are boosting the economy at the moment, shifting the focus to tackling public debt and budget deficits.
The European executive commission also wants to see countries take action to reduce budget gaps under an EU limit of 3 percent gross domestic product.
EU Economy Commissioner Joaquin Almunia said he would set deadlines for nine countries to bring their deficit down: Germany, the Netherlands, Italy, Austria, Belgium, the Czech Republic, Portugal, Slovakia, and Slovenia.
Mr Almunia also said they would assess efforts by Britain, France, Greece, Spain and Ireland to meet deadlines set last April. Some of these countries may get their deadlines extended by an extra year.
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