Saturday, 9 June 2012

Spain: Banks bailout without budget cuts


Spain wants to bail-out its banks with foreign money without increasing public debt
This weekend Spain announced that it will ask for foreign aid to bail-out its banking system. This is an interesting idea because, unlike Britain that increased its public debt to rescue banks, Spain wants to rescue its banks without having to spend a penny and without budget cuts. Great idea! Why didn’t the British government think about something similar?  

It is an interesting proposition and very similar to Greece’s position. Greece wants to avoid paying its debts while staying within the group of Euro countries. In one word, they want to keep the goods and have a refund at the same time. Wonderful! And this comes on top of not paying taxes.

No comments:

Post a Comment