BERLIN (MNI) – A “coordinated European procedure” to recapitalize
banks is needed, German government spokesperson Steffen Seibert said at
a regular press conference on Monday, adding that “Germany prefers a
gradual procedure.”
In a first step, the banks should try to raise funds on the markets
themselves, Seibert said. If that is not possible, the individual EU
member states should try to recapitalize their banks with public funds.
The European Financial Stability Facility (EFSF) would only step in if a
member state is too weak to do that on its own.
However, “receiving money from the EFSF is tied to strict
conditions, which a country would have to comply with,” the spokesperson
said.
Commenting on the upcoming EU summit this week, Seibert reminded
that Chancellor Angela Merkel had already made clear that the debt
crisis could not be solved with one big step. Rather, it will be a long
journey, consisting of gradual steps.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com–
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