Peter Bofinger, an economic adviser to German Chancellor Angela Merkel, said a Spanish banking collapse could threaten the whole European banking system because Spain’s lenders have foreign liabilities of 160 billion euros ($201 billion), Deutschlandradio Kultur reported today.
Europe is now experiencing the failure of a strategy that has been followed in the past two years and that has included quick and maximum budget cuts and solidarity only in emergencies, Bofinger said, according to the radio channel. Europe faces “a pile of broken glass,” he told DRadio.
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