BERLIN - The Spanish government, not banks, is responsible for the rescue of up to €100 million to support the financial sector. This statement was released last Wednesday by German Finance Minister Wolfgang Schaeuble,
“The aid goes to a state authority and the State is responsible for paying the support. In return, the State is committed to an extensive reform of its banking sector and other adjustments,” Schaeuble told the Rheinische Post newspaper.
The Bundestag must approve of the plan that will be presented to them and a promise the rescue of the euro area by €100 million must be made by Spanish banks.
“There is a shortcut for banks to the European Financial Stability Fund (EFSF),” Schaeuble said. “What you need is an instrument that the Bundestag has approved – a State aid to recapitalize their banks,” he added.
Chancellor Angela Merkel faces growing dissent in her own coalition, in which some legislators have expressed concern that the Spanish banks, not the government, are responsible for the support. This concern has not been validated by the Spanish government.