European Central Bank Criticizes Spain on the Rescue of Bankia
The President of the European Central Bank (ECB), Mario Draghi, criticized on Thursday the management of Spain in Bankia case, and rejected a statement by the entity in the market, while he has advocated a “bank union” as a rescue for the euro and its battered financial system.
The European Commission (EC) is waiting for the Spanish Government to communicate the restructuring plan of Bankia and the options expected to “restructure and if necessary recapitalize” the entity, said to National Radio of Spain the Economic and Monetary Affairs community spokesman, Amadeu Altafaj, today.
In the interview, Altafaj added that the EC will approve the plan “if it meets all requirements in terms of public support”.
According Altafaj, the Spanish government should not “resign” to rescue the financial sector, but continue to show determination to undertake the necessary reforms “if possible with market mechanisms.” (MZ)